ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Visa, Mastercard Turn To Generative AI To Combat Fraud; Here's How It Works

The use of Artificial Intelligence has become increasingly common in the Fintech space.
PUBLISHED JUN 23, 2024
VISA, MASTER Card are arranged for a photograph | Getty Images | Photo by studioEAST/Getty Images)
VISA, MASTER Card are arranged for a photograph | Getty Images | Photo by studioEAST/Getty Images)

Banks across the globe are witnessing a jump in a variety of scams. Criminals are using sophisticated tools and technologies to carry out large-scale attacks causing damages worth billions. To combat this, banks are turning to Artificial Intelligence (AI). One of the leaders in digital payments, Visa recently launched a generative AI-powered tool that is embedded in its Visa Account Attack Intelligence (VAAI) system. The company said that the updated VAAI Score system will be available to U.S. issuers first. Similar technologies were launched by another market leader Master Card as well. 



 

To combat enumeration attacks in which criminals employ technologies like botnets and automated scripts to exploit vulnerabilities, Visa is using its VAAI Score. As per its release, 30% of enumerated accounts experienced fraud within five days of compromising their payment information.

Thus, by using generative AI, components to detect abnormal transaction patterns, Visa’s VAAI Score identifies the risk of complex enumeration attacks in real-time and helps stop and mitigate the attacks. 

Visa credit cards are arranged on a desk | Getty Images | Photo Illustration by Justin Sullivan
Visa credit cards are arranged on a desk | Getty Images | Photo Illustration by Justin Sullivan

The new VAAI Score tool is expected to tackle the costly financial frauds that cost $1.1 billion in losses and operational costs annually to the global financial industry, as per Visa’s release. 

The new model reportedly trains on "noisy data" to predict the complex enumeration attacks. So far, the VAAI Score model has been trained on over 15 billion VisaNet transactions and has six times the number of features compared to previous VAAI models. 

The tool assigns a risk score to each transaction in real time for a faster response. As per the release, the company claims that the tool has already delivered an 85% reduction rate in false positive cases. 

Apart from Visa, Mastercard also rolled out similar tools that use AI-powered insights. Last year, Mastercard announced that as per TSB bank’s estimates, the Consumer Fraud Risk tool could help prevent losses worth £100 million to scams across the U.K. if all banks adopted it. 

Coming to 2024, last month, Mastercard unveiled a new generative AI tool called Decision Intelligence Pro. As per a Fortune report,  the company says that the tool can scan one trillion data points in less than 50 milliseconds to predict if a transaction is legitimate. As per Mastercard’s, initial testing, the tool could increase fraud detection rates on average by a minimum of 20% with the highest recorded rate being 300% in some cases.



 

In late 2022, the Treasury Department began using enhanced fraud-detection methods powered by AI to detect fraud, as per a CNN report. The strategy mirrored the one that has been adopted by the banks in the private sector and the use of AI to root out suspicious transactions has produced positive results. 

The U.S Treasury’s AI-powered fraud detection system helped recover $375 million in 2023 alone, Treasury officials told CNN. The use of AI has also led to multiple new active cases and arrests made by law enforcement. 



 

The Treasury officials added that the type of AI used falls into the bucket of machine learning and Big Data. This is similar to the tools used by Visa and Mastercard.  The Treasury’s goal is to move with speed and flag the anomalies to the banks before fraudulent checks and transactions go through.

MORE ON MARKET REALIST
The product had its doubters, but, in the end, the entrepreneurs were able to make a lasting impact.
14 hours ago
Things were not looking too good at one point as most of the sharks had backed out... until the end.
1 day ago
A number of episodes with the icon reprising his role as host will be released this year.
1 day ago
She had only believed that her items were worth a thousand bucks and that was not the case.
1 day ago
The host wasn't expecting such unusual answers to be among the top options.
1 day ago
He was able to get the puzzle right just in the nick of time in order to win a significant amount of cash.
1 day ago
The host seemed pretty confident that the answer was in no way going to be correct.
2 days ago
The history attached to the flag is tragic, and it personally affected the guest.
2 days ago
The product was unique and could help millions of new mothers around the globe.
3 days ago
Viewers believe that the game show sometimes doesn't allow participants to win multiple prizes.
3 days ago
Harvey was clearly annoyed by the answer and refused to buy any explanation.
3 days ago
After his impressive 74 winning streak, Ken Jennings has been hosting the show since 2022 with a $4 million paycheck.
3 days ago
Drew Carey was supposed to look scary, but the host ended up being funny and awkward.
3 days ago
Steve Harvey mocked Snoop Dogg over his choice and went on to roast the rapper more.
3 days ago
It seemed like she was going to lose her chance of winning, but that was not the case after all.
3 days ago
The host is clearly not a fan of hyping up answers that he doesn't personally approve of.
4 days ago
The contestant's appearance was eerily similar to the host's look many years ago.
4 days ago
The East Coast Wrestling Association website has inducted 'Big' Bill Page into the Hall of Fame.
4 days ago
Her composure and confidence in front of all those people were unwavering and commendable.
4 days ago
The duke of Verdura had crafted a masterpiece, a pair of Maltese cross bracelets in enamel for Coco Chanel.
4 days ago