As real-time and account-to-account transactions rise and payments fraud continues to rise with them, Visa is putting artificial intelligence (AI) to work. The company announced Wednesday (March 27) that it will use AI in a trio of new applications within its fraud and risk management technologies platform to protect issuers, merchants and consumers — even if the transaction is not within its network.
According to James Mirfin, senior vice president and global head of risk and identity solutions at Visa, fraud levels within its own network are relatively low — at around 7 cents per $100. But fraudsters continue to find new ways to attack transactions. Social engineering has become a key attack vector, where businesses and financial institutions (FIs) can be duped by fraudsters posing as legitimate customers, as phishing scams and business email compromise scams gain ground.
“It all just plays on human nature,” Mirfin said, “and the organized criminals are getting better at using technology to break trust.”
Add in the fact that real-time payments shrink the window for examining transactions for red flags, and it’s clear that enterprises — FIs and…
