Visa Rolled Out A New AI-Based Anti-Fraud Tool
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Payments giant Visa just unveiled a new tool created to fight against fraud, called Aric Risk Hub. The tool is based on AI technology, and it was designed to help with protecting banks, acquirers, and financial institutions against a broad spectrum of fraud and other financial crimes.
Visa’s new anti-fraud platform was created thanks to the company’s acquisition of Featurespace in September 2024. It deploys adaptive AI which is then used to create profiles around genuine customer activity. This can help maximize approvals, while at the same time, it would be able to identify and stop bad actors in real-time.
The Tool Has Already Given Excellent Results
So far, it has already been implemented in Norway by an alliance of 46 local banks known as Eika Gruppen. Their experience and impressions have revealed that the technology is deemed responsible for a 90% reduction in phishing losses in 2024, compared to the figures recorded in the year before.
Once the tool was implemented, it was first used to learn the behavior patterns of Eika Gruppen customers. This information was needed so that the tool can establish a baseline, and understand what is considered normal behavior.
As a result, when it went live, it was capable of accurately tracking activity and flagging any behavior that deviated from the established definition of normal behavior. As mentioned, it was able to make such calls in real time, with minimal false positives.
Commenting on the tool and its performance, Visa’s head of value-added service in Europe, Tareq Muhmood, stated that the company has been using AI for over 30 years to fight fraud. However, now it is also integrating behavioral data with Aric’s cutting-edge technology.
He believes that this will allow it to further assist its clients, and help them stay ahead of emerging threats. With hackers and scammers constantly inventing new approaches, an AI tool that can detect any behavior that deviates from what is deemed normal could give financial firms and anti-fraud teams a major edge in their continuous battle against bad actors.
