- Visa introduces AI-driven fraud detection service in the UK to combat rising A2A fraud.
- Pilot program yielded a 54% increase in fraud detection efficiency beyond existing bank systems.
- Collaboration with Pay.UK in analyzing billions of retail bank transactions using advanced AI technologies.
- Projected savings of over £330 million ($419 million) in A2A fraud losses in the UK.
- UK Finance reports £1.2 billion ($1.5 billion) in fraud losses in 2023, with marginal decline attributed to industry initiatives.
Main AI News:
In a strategic move to combat rising account-to-account (A2A) fraud, Visa has introduced an innovative AI-driven real-time fraud detection service in the United Kingdom. Dubbed “Visa Protect for A2A Payments,” this cutting-edge solution aims to fortify the security measures within the UK’s robust payment ecosystem.
Following a successful pilot phase, Visa is now rolling out its groundbreaking fraud prevention service to all banks across the UK. According to a press release shared with PYMNTS on Thursday (May 30), Visa reported an impressive 54% increase in fraud detection efficiency beyond existing bank systems during the pilot program.
Mandy Lamb, Managing Director of Visa UK & Ireland, emphasized the imperative of proactive fraud prevention in the face of escalating threats. “The U.K. boasts one of the world’s most sophisticated payment infrastructures, yet it grapples with disproportionately high levels of A2A fraud,” Lamb stated. “Preventing fraud is paramount, as once money falls into the wrong hands, the repercussions are dire.”
The pilot initiative, conducted in collaboration with Pay.UK, scrutinized billions of retail bank transactions spanning a 12-month period. Leveraging advanced AI technologies, Visa identified fraudulent transactions that had previously eluded detection, marking a significant breakthrough in fraud prevention strategies.
Based on the pilot’s outcomes, “Visa Protect for A2A Payments” is projected to yield substantial savings, potentially mitigating over £330 million ($419 million) in A2A fraud losses within the UK. By intercepting suspected fraudulent transactions in real-time, the service aims to safeguard consumers’ finances and uphold the integrity of the financial services sector.
Kate Frankish, Chief Business Development Officer and Anti-Fraud Lead at Pay.UK, underscored the importance of collaborative efforts in combating fraud. “The success of this pilot underscores the significance of innovation and cross-industry collaboration in devising robust solutions to outpace fraudsters and safeguard individuals amidst evolving payment landscapes,” Frankish remarked.
Notably, fraud losses in the UK totaled £1.2 billion ($1.5 billion) in 2023, as per UK Finance reports. While unauthorized fraud losses experienced a marginal decline of 4% from the previous year, initiatives within the financial services industry played a pivotal role in curtailing fraud-related losses and enhancing consumer protection.
Conclusion:
Visa’s launch of an advanced AI-powered fraud prevention service marks a significant advancement in the fight against A2A fraud in the UK. The collaboration with Pay.UK underscores the importance of industry partnerships in developing effective solutions. This initiative not only enhances security measures but also signals a proactive approach by financial institutions to protect consumers and maintain trust in the evolving payment landscape.
