New Visa Reports Underscore Importance of Cybersecurity Amid Shifting Threats

Rhea-AI Summary

Visa Inc. (NYSE: V) has reported an increase in both online and offline fraud as consumer activities return to pre-pandemic levels. According to their Biannual Threats Report, physical skimming devices surged by 176% from June to November 2021. The report highlights that 74% of fraud cases involved e-commerce merchants, with cybercriminals employing tactics like social engineering and ransomware attacks. Visa continues to combat these threats, having invested over $9 billion in network security and utilizing AI to block over $4.2 billion in fraudulent transactions in the past year.

Positive

• Visa has invested over $9 billion in network security over the past five years.
• AI-enabled capabilities blocked over $4.2 billion in fraudulent payments in the last 12 months.

Negative

• Physical skimming attacks increased by 176% in the last year.
• 74% of fraud cases investigated involved e-commerce merchants.

Whether in-person or online, cybercriminals target payments touchpoints with sophisticated fraud techniques

SAN FRANCISCO--(BUSINESS WIRE)-- Visa Inc. (NYSE:V), the world leader in digital payments, today shared an updated look at how fraud has evolved since the height of the pandemic, with criminals simultaneously targeting online and offline vulnerabilities as our daily lives return to a blend of in-person and e-commerce experiences.

“As in-person commerce returns to pre-pandemic levels, crooks are back to exploiting the physical points of vulnerability in stores, while continuing to capitalize on e-commerce through malware, ransomware and phishing attacks, among others,” said Paul D. Fabara, Chief Risk Officer at Visa. “In fact, we are continuing to see high rates of skimming, growing over the already elevated levels of the winter of 2021, where fraudsters are jumping on the rise of in-person activity.”

Two new pieces of research – the latest Visa Biannual Threats Report and an MIT Technology Review Insights study “Moving Money in a Digital World,” released today in partnership with Visa – highlight new and returning threats to the post-pandemic economy.

While fraud early on during the COVID-19 pandemic was concentrated on online scams, in-person attacks are now trending higher as criminals widen their scope to once again capture physical targets. The past year experienced an increase in card-present threats such as physical skimming on ATM and point-of-sale terminals – a trend that will likely persist. For instance, from June – November 2021, Visa saw a 176% increase in physical skimming devices over the previous 12-month period¹.

Digital commerce, crypto users are rich targets for innovative fraudsters

Still, the digital commerce environment – vastly accelerated by the pandemic – remains the richest target for cybercriminals.

Nearly three-fourths of fraud and data breach cases investigated by Visa’s Global Risk team involved e-commerce merchants – often social engineering and ransomware attacks. Digital skimming attacks targeting e-commerce platforms and third-party code integrations are common.

These attacks shine a light on the need for stringent security controls on merchant websites and checkout pages, ensuring external code is not enabled in sensitive cardholder environments. In fact, 42% of respondents in the MIT Technology Review Insights report say security measures are important for their customers, with 59% acknowledging that cybersecurity threats are the biggest challenge to expanding digital payments. Many are prioritizing advanced security capabilities like digital tokens (32%), artificial intelligence and enhanced authorization (43%).

Beyond attacks on traditional currency, threat actors are employing new tactics to defraud cryptocurrency users, including new malware focused on browser extension wallets for crypto users as well as innovation in phishing and social engineering schemes. Crypto bridge services are also a target. From January through February 2022, three sizeable thefts exploiting vulnerabilities in various bridge services netted cyber thieves over $400 million.²

Protection Is Visa’s promise

While cybercrime persists, Visa has increased its efforts to mitigate fraud. Over the past five years, Visa has invested more than $9 billion on network security. Visa employs more than a thousand dedicated specialists protecting Visa’s network from malware, zero-day attacks and insider threats 24x7x365. Visa also deploys AI-enabled capabilities and always-on experts to protect its ecosystem, proactively detecting and preventing billions of dollars of attempted fraud. In fact, Visa’s real-time monitoring with AI blocked over $4.2 billion in fraudulent payments volume in the last 12 months, preventing many from ever knowing they were at risk of a potential fraudulent transaction.

To read more of the Payment Fraud Disruption report, visit Biannual Threats Report (visa.com). To read the full MIT Technology Review Insights Moving Money in a Digital World report, visit Moving money in a digital world | MIT Technology Review.

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

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¹ Visa Global Risk Investigations, June - November 2021
² Visa Biannual Payment Fraud Disruption Report

View source version on businesswire.com: https://www.businesswire.com/news/home/20221006005753/en/

Meg Omecene, 412-713-4539

momecene@visa.com

Source: Visa Inc.

FAQ

What has Visa reported about fraud trends in 2023?

Visa has reported increased fraud targeting both online and in-person transactions as consumer activity returns to pre-pandemic levels.

How much has Visa invested in security in the last five years?

Visa has invested over $9 billion in network security over the past five years.

What percentage increase did Visa see in physical skimming devices?

Visa observed a 176% increase in physical skimming devices from June to November 2021.

What role does AI play in Visa's fraud prevention?

Visa employs AI to proactively detect and block fraudulent transactions, having prevented over $4.2 billion in attempted fraud in the last year.

Which sector is most affected by fraud according to Visa's report?

According to Visa, nearly 74% of fraud cases involved e-commerce merchants.