Visa Launches AI To Prevent Fraud
Research conducted by the University of Maryland, states that every 39 seconds a hack is underway. By some estimates, cybercrime will have cost the world $6 trillion by 2021 in damaged and destroyed data, stolen money, lost productivity, theft of intellectual property and various other illegitimate purposes.
Melissa McSherry, SVP and global head of credit and data products, told Karen Webster in a recent conversation, fraudsters are persistent and often sophisticated, and VisaNet is a favored target — as it has been for decades.
Visa is an American multinational financial services corporation headquartered in Foster City, California United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, gift cards, and debit cards.
Visa Inc. is rolling out a state of the art platform to help its engineers and software developers rapidly test advanced artificial-intelligence algorithms aimed at detecting and preventing credit card fraud. The platform, built in house by Visa Experts and is said to be launched later this year, is an example of the financial service industry’s trend of using AI to detect patterns in transactions that could indicate fraudulent transactions.
Visa said it has spent about $500 million over the past five years on AI and data-infrastructure projects. Visa currently uses machine-learning algorithms to sift through data to identify anomalies, an effort that prevents billions of dollars in fraudulent transactions annually. However, that model of regulations is outdated as hackers are getting more innovative at evading the Algorithms built-in place to detect these kinds of fraudulent transactions. Deep learning models can automatically identify more intricate patterns and determine with greater accuracy whether these transactions are legitimate
It helps that Visa has been guided by the same philosophy since 1993 in pushing its AI efforts — and it’s paying off.