Visa has introduced its latest measure in the fight against financial fraud: the Visa Scam Disruption (VSD) initiative.
This new department, which is part of the Visa Payment Ecosystem Risk and Control (PERC), boasts a remarkable track record, having saved potential victims $350m from various scams in the past year alone. This adds to the impressive $40bn that PERC prevented in attempted fraud across the Visa network during the same period.
The establishment of VSD underscores Visa’s ongoing commitment to enhancing security and reducing fraud through significant technological investments, which have totalled over $12bn in the past five years. Paul Fabara, chief risk and client services officer at Visa, highlighted the dual strategy of leveraging both cutting-edge technology and the diverse experiences of Visa’s workforce to tackle scams. “At the same time, we have made a significant investment in our best weapon against scammers: our people,” he said.
VSD is set to enhance Visa’s capabilities in detecting and disrupting scam operations through several innovative strategies. The department utilizes a mix of advanced generative AI tools and proprietary network-level data to dissect and disrupt scam networks. One notable success involved the dismantling of a large-scale scam network that used phishing links from a dating website to enroll victims in fraudulent recurring billing cycles. This operation alone saved over $37m in potential fraud losses and led to the closure of nearly 12,000 fraudulent merchants.
Moreover, VSD focuses on a proactive investigation process that employs various channels and methodologies to address scams before they can inflict significant financial damage. By partnering with financial institutions, law enforcement agencies, and other third-party partners, Visa aims to strengthen the entire financial ecosystem against the threats posed by scammers.
Michael Jabbara, SVP and global head of PERC at Visa, remarked on the personal nature of these scams and their profound impact on victims. “These scams directly impact the lives of victims, sometimes with devastating effects,” he stated. Visa’s collaborative approach with intelligence partners and industry groups further aims to equip other ecosystem members with the tools to recognize and react to potential scams proactively.
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