Visa's AI-Powered Fraud Prevention Blocks $40 Billion in Fraudulent Transactions in 2023

Visa: AI Helped Block 80 Million Fraudulent Transactions in 2023

Visa's investments in artificial intelligence (AI) and other technology reportedly enabled the payments processor to block 80 million fraudulent transactions worth $40 billion in 2023. Charles Lobo, regional risk officer for Visa in Central and Eastern Europe, Middle East and Africa, shared these figures with Reuters, according to a report posted Tuesday (July 23). "Now despite that, there's still a lot of bad that's happening," Lobo said, per the report. Over the past five years, worldwide, Visa has invested over $10 billion in technology, including $500 million on AI and data infrastructure to guard against fraudulent activity, according to the report. PYMNTS Intelligence has found that an increasing number of financial institutions are deploying AI and machine learning (ML) tools to combat fraud. Those efforts appear to be working, as financial institutions that now use AI or ML to mitigate fraud are seeing steep declines in common forms of fraud, according to the PYMNTS Intelligence and Hawk collaboration, "Leveraging AI and ML to Thwart Scammers." Visa said in May that it launched an AI-powered real-time fraud detection service in the United Kingdom, aiming to prevent account-to-account (A2A) fraud. The company made this "Visa Protect for A2A Payments" service available to all banks in the U.K. after a pilot program in which it found an additional 54% of fraud beyond that identified by banks' fraud prevention systems. Also in May, Visa launched a generative AI solution designed to help issuers combat enumeration attacks -- card testing attacks in which threat actors use automated scripts, botnets and other technologies. Visa's tool can learn normal and abnormal transaction patterns, identify the likelihood of complex enumeration attacks in real time and help clients use the risk score in their authorization decisioning when used with a rule engine. In March, Visa said it would use AI in a trio of new applications within its fraud and risk management technologies platform to protect issuers, merchants and consumers. "We're continuing to invest to make the Visa credentials as secure as possible -- and to extend that protection more broadly across the payments ecosystem," James Mirfin, senior vice president and global head of risk and identity solutions at Visa, told PYMNTS' Karen Webster.

Visa prevented $40 bln worth of fraudulent transactions in 2023- official

JOHANNESBURG, July 23 (Reuters) - Visa prevented 80 million fraudulent transactions worth $40 billion globally last year thanks to investments in technology including artificial intelligence (AI), a senior company figure said on Tuesday. In 2025, cybercrime is projected to cost the world $10.5 trillion. If this were a nation's gross domestic product, it would rank as the world's third-largest economy, Charles Lobo, the Regional Risk Officer for Visa in Central and Eastern Europe, Middle East, and Africa told Reuters. This comes as scams evolve in sophistication, with criminals using new approaches to trick unsuspecting consumers and businesses in a digitally evolving world. Worldwide, the world's largest payments processor has invested over $10 billion over the past five years in technology, including $500 million on AI and data infrastructure to protect clients and customers from fraudulent activity. "In just the last year, those investments, how have they benefited us? We've blocked $40 billion of fraudulent transactions. That's 80 million transactions prevented," Lobo told Reuters on the sidelines of a Visa payment security conference in Johannesburg, South Africa. "Now despite that, there's still a lot of bad that's happening," he added. (Reporting by Nqobile Dludla Editing by Keith Weir)

Visa prevented $40 billion worth of fraudulent transactions in 2023- official

JOHANNESBURG (Reuters) - Visa prevented 80 million fraudulent transactions worth $40 billion globally last year thanks to investments in technology including artificial intelligence (AI), a senior company figure said on Tuesday. In 2025, cybercrime is projected to cost the world $10.5 trillion. If this were a nation's gross domestic product, it would rank as the world's third-largest economy, Charles Lobo, the Regional Risk Officer for Visa in Central and Eastern Europe, Middle East, and Africa told Reuters.

Visa Warns Cybercrime Could Rival World's Top Economies by 2025 - Reportedly Defends Against $40B In Fraud - Visa (NYSE:V)

Cybercrime's projected $10.5 trillion impact by 2025 highlights its potential as a major global economic threat, per Visa's warnings. Visa Inc. V reportedly thwarted 80 million fraudulent transactions totaling $40 billion globally last year, aided by technology investments such as artificial intelligence (AI). By 2025, cybercrime's projected $10.5 trillion cost would surpass the GDP of all but two nations, positioning it as the world's third-largest economy, reported Reuters, citing Charles Lobo, the Regional Risk Officer for Visa in Central and Eastern Europe, Middle East, and Africa. This trend reflects the increasing sophistication of scams, as criminals employ new tactics to deceive both consumers and businesses in an ever-evolving digital landscape. Also Read: US Stock Futures Little Changed As Traders Brace For Q2 Reports From Alphabet, Tesla: 'There Remains Strong Fundamental Support For Large Caps,' Says Economist Globally, the leading payments processor has invested more than $10 billion in technology over the past five years, allocating $500 million specifically toward AI and data infrastructure to safeguard clients and customers against fraudulent activities, Reuters added. "In just the last year, those investments, how have they benefited us? We've blocked $40 billion of fraudulent transactions. That's 80 million transactions prevented," Lobo told Reuters during a Visa payment security conference held in Johannesburg, South Africa. According to Benzinga Pro, V stock has gained over 9% in the past year. Investors can gain exposure to the stock via IShares U.S. Financial Services ETF IYG and SPDR Select Sector Fund - Financial XLF. Price Action: V shares are trading lower by 1.25% to $264.36 at last check Tuesday. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image: Shutterstock/ Tony Stock Read Next: Turn Trading Into The Ultimate Side Hustle Using Benzinga Tools In A Free Webinar Market News and Data brought to you by Benzinga APIs