In May, both Visa and Mastercard shared details on ways they are using generative AI to combat fraud.
What will this mean for your business? Here’s what we know so far:
Visa
Visa announced that it is enhancing its Visa Account Attack Intelligence (VAAI) service with the addition of the VAAI Score. This new tool helps issuers make more informed decisions on when to block a transaction by harnessing generative AI to provide a real-time risk score that helps detect an enumeration attack.
An enumeration attack is a fraud scheme wherein the fraudster systematically submits card-not-present authorization attempts, iterating through various combinations of payment values (e.g., primary account number (PAN), expiration date, zipcode, etc.) Issuers decline the authorization attempts until the right combinations of payment values returns an approval response, which is an indication to the fraudster that they have obtained a valid combination of payment values. According to Visa, enumeration attacks cause $1.1B of fraud losses annually.
The VAAI Score will initially be available to U.S. issuers.
For more information, see the Visa press release: Visa Announces Generative AI-Powered Fraud Solution to Combat Account Attacks
Mastercard
Mastercard shared that the use of generative AI has enabled it to double the speed at which it can detect potentially compromised payment cards.
When fraudsters steal payment card numbers they typically place part of the 16-digit account number on illegal websites in a bid to sell the data to other criminals. The new technology enhances Mastercard’s ability to predict the full card details of these compromised cards on its network, enabling banks to block them faster than previously.
According to Mastercard, using generative AI-based predictive technology it is able to protect future transactions against emerging threats, by:
- doubling the detection rate of compromised cards
- reducing false positives during the detection of fraudulent transactions against potentially compromised cards by up to 200%
- increasing the speed of identifying merchants at risk from or compromised by fraudsters by 300%
For more information, see Mastercard’s press release: Mastercard Accelerates Card Fraud Detection with Generative AI technology
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Verisave has more than 20 years of experience optimizing and monitoring the credit card processing industry.