Within Visa's battle to get a lead to beat fraud

According to Visa, his new fraud team started briefly in his first year and affected that dozens of attacks so far.

Visa organized several interdisciplinary team engineers, former law enforcement officers, data visualization experts and other-in a fraudulent team in early 2024 to combat a Safety problem that is become more expensive.

The practice of the card network uses the company's enormous transaction and fraud functions to identify data that serves as a drainage of the payment network. The service fits with a wider visa strategy diversify its products Beyond payments by concentrating on related technologies such as security.

The fraud dismissal service also aims to reduce consumer losses for a kind of payment breakage that often leads to financial commitment to consumers. Although there are indirect costs for fraud for payment networks such as visa, these networks generally do not bear any direct costs for non -authorized transactions. Instead, the issuing bank, the dealer or the dealer bank covers the costs for the non -authorized fee if a card holder contests a transaction with the issuing bank, depending on the circumstances.

Fraud that are authorized after some definitions are different. Fraudsters often try to make the victims, pay goods or services (even if these things are shown incorrectly) instead of trying to steal their financial information. This can make the card holder liable for losses if it is stated that these payments are authorized.

However, this does not prevent any card holders from reporting transactions who are ultimately their own liability. In addition, the facts of each controversial transaction for determining liability and the clarification of these facts are of crucial importance.

In particular, each controversial transaction costs the exhibiting bank the protocol or the hours in which claims have to issue the investigators, and the costs for issuing banks can be implemented to reduce income for the providers of the bank.

In cases where a fee is called back-in which the issuing bank will pay the dealer and his bank back the transaction-the dealer bank can bear some of the costs. A report from 2023 From the Federal Reserve Board, dealers made 47% of the losses from fraudulent transactions, issuers took 33.5% and dealer banks the remaining 19.5%.

If a payment network can reduce the number of hours that a bank for investigations – and the total cost of fraud and fraud – will issue, the network for card emitters and dealer banks will be more attractive, taking into account the few payment networks that want to open up for card products and services. As Jabbara put it, Visa's fraud is helped to make the network more secure overall.

“Ultimately, we protect the consumer,” Jabarra told American Banker and added that the disruption of fraud networks builds up the trust between visa and consumers. He also said that it helps build the company's trust with dealers.

Fighting scams also helps to disturb the fraud ecosystem, which tends to overlap with the fraud ecosystem and acts as important income for everyone involved. The global payment card fraud losses reached 33.83 billion US dollars in 2023. A January report From Nilson Report, an analysis company for card payment industry.

Jabbara said that visa does not bother the criminal infrastructure of fraudsters, it will “appear in another part of our ecosystem”, namely in the form of fraudsters.

A map network that promises to close fraud dealers can also gain favor from the supervisory authorities – especially in Europe, where the pressure on the banks increases to bear fraud costs.

Jabbara said it was not a special compliance or regulatory motivation behind the practice of fraud.

“No, that is a lot part of our developing security strategy,” said Jabbara in response to a question of regulatory or compliance efforts that may have inspired the consolidation of the new department.

One of the fraudsters rings that the visa in his announcement chopped in romanticism, in which fraudsters tempt the consumers to believe that they chat online with a love interest. Some main cell -rich romantic fraud ends in large -scale losses for the victim who could believe that they pay for the well -being of their love interest or to invest in an extremely successful cryptocurrency.

Other ways to steal money during a romantic fraud are less expensive for individual victims, but often enough to have the payment industry. In a common program, a fraudster sends a phishing link to a mass -e -e -mail list of victims. The link looks like a legitimate online dating website.

As part of the registration process, the victim must provide his credit card information as part of an identity examination service. These fraudsters offer an opportunity for identity theft, but also offer the fraudster the opportunity to set up recurring payments against the victim's card account, even if the victim was of the opinion that they only provide card information as part of an identity inspection control.

Visa is not the first to organize a fraud. His rival in April 2024 Mastercard Published Scam Protect, a number of products that use new forms of artificial intelligence to proactively identify and prevent payment fraud.

According to the company, of the 350 million US dollars, of which Visa said that his fraud disease practice saved consumers in his first year, have been due to these fraudulent identity examination dealers.

“If you were careful, it would be a dealer name that you would not recognize, but maybe you think it was a parking thing, a drink or a random kiosk somewhere,” said Jabbara how the victims overlook these small scam transactions. The fraudsters “think a lot about how they can keep them on the hook for as long as possible,” he said.