Visa Said Their AI-Powered Fraud Detection Helped Prevent US$25 Bil in Fraud Annuallyby Fintech News Singapore June 18, 2019
Visa just announced that their Visa Advanced Authorisation (VAA) process, done using artificial intelligence, has helped financial institutions prevent an estimated US$25 billion in annual fraud.
VAA, used by Visa themselves, is a comprehensive risk management tool that monitors and evaluates transaction authorisations on the Visa global payment network, VisaNet. The process is done in real-time to help financial institutions identify and respond to emerging fraud patterns and trends. Visa uses neural networks modeled after the human brain to power its AI platform to identify possible fraud, which the company reports delivers faster and deeper insights through previously unknown correlations.
Visa processed more than 127 billion transactions between merchants and financial institutions on VisaNet last year, employing the AI to analyse transactions, each they claim conducted within milliseconds.
More than 8,000 financial institutions in 129 countries use Visa Advanced Authorization.
Melissa McSherry, senior vice president and global head of Data, Risk and Identity Products and Solutions, Visa said:
“One of the toughest challenges in payments is separating good transactions made by account holders from bad ones attempted by fraudsters without adding friction to the process.”
“Visa was the first payment network to apply neural network-based AI in 1993 to analyze the riskiness of transactions in real time, and the impact on fraud was immediate.”
Featured image via Visa Philippines