SAN FRANCISCO - Visa Inc . (NYSE:V) has launched a new feature within its Visa Account Attack Intelligence (VAAI) service, aiming to bolster the detection and prevention of enumeration attacks in card-not-present (CNP) transactions.
The VAAI Score, which utilizes generative AI components, assigns a risk score to each transaction in real-time, helping U.S. issuers to identify and mitigate fraudulent activities more effectively.
Enumeration attacks, where threat actors use automated scripts and botnets to test card numbers en masse, have become a significant concern in the digital payments industry, leading to approximately $1.1 billion in annual fraud losses. Visa's response to this growing threat is the VAAI Score, which can identify the likelihood of such attacks, allowing issuers to make prompt and informed decisions on whether to block a transaction.
Paul Fabara, Visa's Chief Risk and Client Services Officer, emphasized the pressing need for tools that can detect and prevent these attacks instantaneously. The VAAI Score is designed to reduce the false positive rate by 85% compared to other models, focusing on specific signals for enumeration attacks to enhance performance.
The benefits of the VAAI Score include:
- Real-time detection of complex enumeration attacks, potentially reducing subsequent fraud and operational losses.
- An improved cardholder experience by ensuring legitimate transactions are not affected.
- Real-time transaction scoring, providing a risk score within 20 milliseconds, which can be integrated into issuers' authorization decision processes.
Michael Jabbara, SVP Global Head of Fraud Services at Visa, highlighted the impact of enumerated transactions on the entire payment ecosystem. The VAAI Score aims to protect cardholder accounts from being compromised and to interrupt fraudulent transactions before they occur.
The model behind the VAAI Score has been trained on over 15 billion VisaNet transactions and boasts six times the number of features compared to previous models, offering a more refined assessment of suspicious transactions. Visa's advanced AI model evaluates each CNP transaction against known enumeration patterns to produce a two-digit risk score that predicts the likelihood of an attack.
Visa has invested over $10 billion in technology over the past five years to enhance network security and reduce fraud. In fiscal year 2023, Visa's efforts helped block $40 billion in potential fraud.
The introduction of the VAAI Score is part of Visa's ongoing commitment to maintaining a secure and reliable payment network. This article is based on a press release statement from Visa Inc.
InvestingPro Insights
As Visa Inc. (NYSE:V) continues to innovate in fraud prevention with the introduction of its Visa Account Attack Intelligence (VAAI) Score, the company's financial health and market performance remain critical for investors.
According to InvestingPro data, Visa boasts a robust market capitalization of $545.61 billion, reflecting its significant presence in the financial services industry. The company's P/E ratio stands at a high 30.28, indicating investor confidence in Visa's profitability and future growth prospects, despite trading at a high earnings multiple relative to near-term earnings growth.
Visa's dedication to security is further underscored by its financial stability, with cash flows that can sufficiently cover interest payments, an InvestingPro Tip that highlights the company's solid financial footing. This is especially pertinent given Visa's substantial investment in technology to combat fraud.
Moreover, the company has a history of rewarding shareholders, having raised its dividend for 16 consecutive years, a testament to its consistent performance and commitment to returning value to its investors.
The InvestingPro platform offers additional insights and tips for Visa, including an InvestingPro Fair Value estimate of $267.9. For investors seeking a deeper dive into Visa's financial metrics and potential investment strategies, there are 19 additional InvestingPro Tips available at https://www.investing.com/pro/V. To enhance your investing experience, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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