Visa has announced that its artificial intelligence (AI) technology has prevented nearly $25bn in annual fraud, thereby making global payment ecosystem safer.
The digital payments company said that the data is based on a new analysis of Visa Advanced Authorization (VAA), which uses AI to stop potential frauds.
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VAA is a comprehensive risk management tool that assesses transaction authorisations on VisaNet, its global payment network.
The tool is capable of identifying suspicious transactions in real time and notifies the financial institutions.
Last year, Visa processed more than 127 billion transactions between merchants and financial institutions on VisaNet. All the transactions made through the network were analysed by AI to improve payment security.
According to the company, more than 8,000 financial institutions in 129 countries use VAA.
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By GlobalDataVisa Data, Risk and Identity Products global head and senior vice-president Melissa McSherry said: “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.
“Visa was the first payment network to apply neural network-based AI in 1993 to analyse 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.”
Recently, Western Union partnered with Visa to facilitate fund transfers across the world.
