Research indicates that the surge in e-commerce is projected to result in $362 billion in fraud losses from 2023 to 2028. The rise of AI enhances fraudulent tactics, making activities like card enumeration and deepfakes more efficient, imposing substantial losses on businesses and consumers alike. To combat these challenges, Visa Protect offers an AI-driven suite of solutions, including real-time risk scoring, aimed at safeguarding digital transactions. With the increasing presence of card-not-present (CNP) transactions, which lack the security measures of physical cards, financial institutions face unique difficulties. While effective security methods can prevent fraud, they may also lead to legitimate transactions being declined, prompting customers to switch providers. James Mirfin, SVP and global head of risk and identity solutions at Visa, highlights that AI and bots enhance the efficiency of fraud tactics, adding that generative AI is increasingly used in phishing schemes.

The consequences of fraud are stark, causing financial strain on consumers and significant operational challenges for merchants and banks. Visa has been at the forefront of AI in fraud prevention for over three decades, assessing billions of transactions annually through its Visa Protect solutions. These solutions provide merchants and financial institutions with real-time risk assessments across various transaction points, allowing them to make informed decisions based on their own risk tolerance. In fiscal year 2023, Visa successfully thwarted $40 billion in fraudulent transactions and offers nearly 200 products aimed at risk management and payment safety. Their evolving risk-scoring methods continuously adapt to counteract advancing fraud techniques, illustrating the pressing need for robust protection measures. In summary, while the threat of fraud is escalating due to sophisticated technology, AI tools like Visa Protect play a crucial role in protecting businesses and securing consumer transactions, helping to ensure smoother and safer payment experiences. For more insights on safeguarding payments, you can explore Visa Protect's solutions.