Visa Blocks $40 Billion in Fraud with AI
- Visa has reported preventing $40 billion worth of fraudulent transactions over the last year, nearly double the amount from the previous year.
- The company achieved this through the use of artificial intelligence technologies.
- This highlights the growing reliance on AI for fraud prevention in the financial services industry.
Visa is intensifying its efforts to combat fraud by employing artificial intelligence (AI) and machine learning technologies. The company analyzes over 500 attributes for each transaction, generating a real-time risk score to identify potential fraud. With approximately 300 billion transactions processed annually, Visa's AI model is designed to detect new fraud patterns and alert customers to high-risk transactions, enabling them to make informed decisions about approvals. The rise of generative AI has significantly enhanced the capabilities of cybercriminals, making scams more sophisticated and convincing. According to a report by Visa, fraudsters can now clone voices using less than three seconds of audio, which can be exploited to deceive family members or banking employees. This alarming trend has led to unprecedented financial losses for consumers, prompting Visa to highlight the urgent need for advanced protective measures. Paul Fabara, Visa's chief risk and client services officer, emphasized the growing threat posed by generative AI in the firm's biannual threats report. He warned that as technology becomes more accessible, the frequency and severity of scams are likely to increase. The report projects that fraud losses in the U.S. could soar to $40 billion by 2027, a significant rise from $12.3 billion in 2023, underscoring the critical need for robust defenses against evolving fraud tactics. As the landscape of financial fraud continues to evolve, Visa's proactive approach aims to safeguard consumers and financial institutions from the escalating risks associated with generative AI-driven scams.