Visa has introduced an anti-fraud technology that will help to spot fraudulent activities, which has now reached an all time high of $1.5 billion. Visa has updated its technology to an upgraded version of Visa Advanced Authentication, which is the company`s “real time risk scoring technology”. These improvements in technology will help the fraud detection by approximately 29% and also help improve in detecting the highly sophisticated credit card frauds by a huge 122%. This implementation will help the company in detecting an extra $1.5b through fraudulent transactions in the coming year, the company stated.
Officials at Visa however, have declined to give any specific detail regarding the upgrade. However, an Advanced Authentication would now be equipped with faster and much more precise fraud detection techniques which will have improved architecture and algorithms that will enable Visa to crack even the most complex and voluminous transaction in no time and would also provide on-the-spot risk scores that would be used to either block or allow the online transactions through retailers or merchants.
Kevin Siegel, of Visa, states that there are huge amounts of data, which they build their analytics on. This upgrade would open doors and allows a wide range of methods which could not be used before.
American Express, Visa, and MasterCard are some of the major credit card companies that are equipped with the most advanced and powerful fraud detection systems that are available. Around 45 billion credit card transactions were processed within the one-year period by Visa and it ended in September 30, 2010. All of those transactions were run through VisaNet, the global processing platform for the company where Advanced Authentication is also a part. These risk scores on transactions are based on the spending patterns across their network as well as the company`s overall view of fraud, the company has stated.
These fraud syndicates are very savvy and are aware of the functioning of these fraud detection systems, they are structuring transactions to avoid detection by creating fraud networks, which then mimics legitimate transactions. They then manipulate the network then escape millions of dollars.