Visa Helps Holiday Shoppers Stay Secure, Blocking Nearly 85% More Suspected Fraud Globally This Cyber Monday Compared to Last Year¹

Rhea-AI Summary

Visa reported significant success in fraud prevention during the 2023 holiday shopping season, blocking 85% more suspected fraud globally on Cyber Monday compared to last year. The company noted a 200% increase in suspected fraudulent transactions throughout the holiday weekend, attributed partly to fraudsters' adoption of AI.

Having invested $11 billion in anti-fraud technology over the past five years, Visa's AI and machine learning capabilities, including the Visa Account Attack Intelligence Score, are actively combating fraud attempts. The company blocked $40 billion of suspected fraudulent transactions last year and continues to enhance its security measures to protect shoppers during both physical and digital transactions.

Positive

• 85% increase in fraud prevention effectiveness on Cyber Monday year-over-year
• $11 billion investment in anti-fraud technology over past 5 years
• Successfully blocked $40 billion in suspected fraudulent transactions last year
• Implementation of new AI-powered security tools like Account Attack Intelligence Score

Negative

• 200% increase in fraudulent transaction attempts during holiday weekend
• Growing threat from AI-equipped fraudsters targeting payment systems

Insights

Security Technology Analyst

The 85% increase in blocked fraud attempts and 200% rise in suspicious transactions highlight a significant escalation in AI-powered fraud tactics. Visa's $11 billion investment in security infrastructure demonstrates forward-thinking preparation for this threat landscape. The implementation of generative AI tools like the Account Attack Intelligence Score represents a important advancement in proactive fraud prevention. This positions Visa strongly against emerging threats while maintaining transaction fluidity - critical for both merchant and consumer confidence during peak shopping periods.

The blockchain and AI-powered security measures have proven particularly effective during high-volume periods, suggesting robust scalability. This technological edge in fraud prevention could translate to reduced operational losses and strengthened market position in the payments sector.

Financial Analyst

Visa's substantial $11 billion technology investment is yielding measurable returns in fraud prevention, directly protecting revenue streams during important shopping periods. The 85% year-over-year increase in blocked fraud attempts indicates both improved detection capabilities and escalating threats. This enhanced security infrastructure serves as a competitive moat, potentially leading to increased merchant adoption and consumer preference.

The company's proactive stance in blocking $40 billion in suspected fraudulent transactions last year demonstrates strong risk management, which should positively impact bottom-line performance by reducing fraud-related losses. This technological advantage could drive market share growth and maintain Visa's premium position in the payments ecosystem.

The payments technology company is leveraging the latest in Artificial Intelligence to block fraud before it happens, giving holiday deal seekers a reason to rejoice

SAN FRANCISCO--(BUSINESS WIRE)-- Visa's critical investments in the fight against fraud are paying off for holiday shoppers this holiday season. On Cyber Monday alone, Visa blocked nearly 85% more suspected fraud globally compared to last year.¹ Throughout the holiday weekend, suspected fraudulent transactions rose 200% around the world, due in part by the adoption of AI by fraudsters.²

Over the past five years, Visa has invested $11 billion in cutting-edge technology to combat fraud. This holiday season, as shoppers flocked to both physical and digital stores, fraudsters were also on the move. However, Visa's advanced AI and machine learning capabilities were hard-at-work combatting their efforts.

“Although crooks are using AI more and more, so are we. And that’s paying off,” said Paul Fabara, Chief Risk and Client Services Officer at Visa. “As we saw during the kickoff to the holiday shopping season, Visa continues to thwart more attempts at fraud from these bad actors, continuing our mission to be the safest way to pay and be paid for everyone, everywhere.”

As shoppers got their physical and digital carts ready for the seasonal sales, fraudsters ramped up their efforts, using the latest in AI and machine learning technology to attempt big monetary returns on their scams. Tools like the Visa Account Attack Intelligence Score, which launched earlier this year, leverage generative AI to stop fraud before it happens – wherever and however you’re shopping.

Last month, Visa released its annual Holiday Threats Report, highlighting scam trends consumers should be aware of heading into the busy season, and providing tips for safe shopping. While Visa proactively blocked $40 billion of suspected fraudulent transactions last year, the payments technology company strongly encourages consumers to do their part to stay vigilant and aware of potential threats.

For more information on how Visa works to prevent fraud globally, visit Visa.com.com/security.

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 Authorization Data, Global, 12/2/2024 compared to 11/27/2023
² Visa Authorization Data, Global, 11/29/2024-12/2/2024 compared to 11/24/2023-11/27/2023

View source version on businesswire.com: https://www.businesswire.com/news/home/20241217816327/en/

Meg Omecene

momecene@visa.com

Source: Visa Inc.

FAQ

How much did Visa's fraud prevention increase on Cyber Monday 2023?

Visa blocked nearly 85% more suspected fraud globally on Cyber Monday 2023 compared to the previous year.

How much has Visa (V) invested in fraud prevention technology?

Visa has invested $11 billion in cutting-edge technology to combat fraud over the past five years.

What is the total value of fraudulent transactions blocked by Visa in 2022?

Visa proactively blocked $40 billion of suspected fraudulent transactions in 2022.

What new AI tool has Visa (V) implemented for fraud prevention?

Visa has implemented the Account Attack Intelligence Score, which leverages generative AI to stop fraud before it happens.

How much did fraudulent transaction attempts increase during the 2023 holiday weekend?

Suspected fraudulent transactions rose 200% globally during the holiday weekend.