Visa uses AI to prevent $25bn in fraud

Visa has announced new analysis showing Visa Advanced Authorization (VAA) using artificial intelligence (AI) helped financial institutions around the world prevent an estimated $25 billion in annual fraud. VAA is a comprehensive risk management tool that monitors and evaluates transaction authorizations on the Visa global payment network, VisaNet, in real time to help financial institutions promptly identify and respond to emerging fraud patterns and trends. Visa processed more than 127 billion transactions between merchants and financial institutions on VisaNet last year and employed AI to analyze 100 percent of the transactions--each in about one millisecond--so financial institutions can approve legitimate purchases while quickly identifying and preventing fraudulent transactions. "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," said Melissa McSherry, senior vice president and global head of Data, Risk and Identity Products and Solutions, Visa. "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. By striking the right balance between human expertise and technology innovation, we continue to evolve our capabilities as new AI breakthroughs expand the realm of what's possible."