Visa has announced the launch of new AI-powered solutions within its Visa Protect suite to strengthen fraud prevention for digital transactions. With a focus on account-to-account and card-not-present payments, these new tools aim to enhance security and protect users from potential fraudulent activities.
As part of its commitment to combatting fraud, Visa has invested $10 billion in technology and innovation over the last five years. This investment has enabled the company to develop advanced fraud prevention capabilities that have successfully blocked $40 billion in fraudulent transactions in 2023.
The three new additions to the Visa Protect suite include Visa Deep Authorization (VDA), which uses deep learning models to improve risk scoring for card-not-present payments. Visa has also expanded its existing Visa Advanced Authorization (VAA) and Visa Risk Manager (VRM) solutions to cover non-Visa card payments, making these AI-powered tools more accessible for a wider range of transactions. Additionally, Visa is introducing a real-time protection service for immediate payments like P2P digital wallets and account-to-account transfers, leveraging AI to assess risk and prevent fraud in real-time.
Other major players in the industry, such as Mastercard and PayPal, have also been investing in AI to enhance their fraud detection capabilities and minimize costs. Mastercard is providing banks with AI-based risk detection tools, while PayPal plans to implement AI in its Venmo service to personalize the online shopping experience for users.
Visa’s stock has seen a 27% increase in the last 12 months, and investors can access it through funds like SPDR Select Sector Fund – Financial (XLF) and iShares U.S. Financial Services ETF (IYG).
In conclusion, Visa’s new AI-driven fraud prevention tools, coupled with its substantial investment in technology and innovation, demonstrate the company’s dedication to enhancing security and safeguarding digital payments for consumers worldwide.
