AI Prevents Millions of Frauds From Affecting Businesses | NZBusiness magazine


Visa Advanced Authorization AI solution helped financial institutions prevent nearly $ 88 million in fraud affecting New Zealand businesses last year[1].

Visa pioneered the use of neural networks modeled on the human brain to power its AI technology that analyzes the risk of transactions in real time to detect and stop fraud. The AI ​​algorithm evaluates more than 500 risk attributes in around a millisecond to provide an assessment of the predicted probability of fraud for each transaction.

While fraud rates have remained stable over the past year and are near historic lows worldwide, Visa’s AI-powered security is becoming increasingly important as payments continue to shift rapidly online, where fraudsters commit most of their crimes. The NZ Post reported that over two million New Zealanders shopped online in 2020, 9.2% more than the previous year, and spent $ 5.8 billion on online shopping – $ 1.2 billion more than in 2019.[2]

“As consumer spending continues to shift to the Internet, fraudsters are also coming into focus. We are investing more than ever in technology that ensures a safe and secure marketplace – fighting fraud while enabling seamless, real transactions. This investment, which includes a global team of over 850 cyber specialists, includes system resiliency, cybersecurity tools such as tokenization, AI and blockchain-based solutions, ”said Anthony Watson, Visas Country Manager for New Zealand and the South Pacific.

One of the biggest threats to businesses in New Zealand and around the world over the past year has been the enumeration, the criminal practice of using automation to test and guess payment information such as bank account numbers, CVV2 and / or expiration dates during online checkout.

To counteract this, Visa uses another AI-based solution, Visa Account Attack Intelligence, which recognizes patterns in data that are otherwise not recognizable to humans. The technology uses cutting-edge machine learning to identify account tests, analyze the details of the attack, and enable Visa to take action in near real-time.

“The most basic attribute in commerce is trust – if a company loses a customer’s trust, it loses sales,” says Watson. “The global nature of the Visa network means we can apply the lessons learned from Visa transactions with merchants in every country and territory in which we operate globally to protect New Zealand businesses.”

[1] VisaNet transactions, May 2020 – April 2021

[2] NZ Post, the full download 2021


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