Sunday, May 1, 2022

An Astonishing View Of How Visa Is Fighting Credit Card Fraud

 


As I mentioned in yesterday’s blog, AI and ML are some of the terms in Cybersecurity that have been thrown about carelessly in the last couple of years.  My fingers point especially to the vendors out there that claim their products and solutions contain AI and ML, and are at the forefront for any customer when it comes beefing up the lines of defenses.

While it may be true there could be some basic algorithms that have been incorporated into it, it is nothing of rocket science that the vendor has invented.

They are simply overextending their definition of AI and ML (I would actually like to use the word “lie”, but that might be going a little too far with it), in order to woo customers to purchase whatever they have to offer.  And of course, they will fall in hook, line, and sinker, and get it, because they think they are getting the “best in breed” solutions.

Heck, even I have used AI and ML many times before, but I try to be careful in the context as to how it is used, and I am also conscious as to what it can and cannot do.  In other words, I try not to overstate anything to the best that I can. 

In this regard, I have only given very generic examples as to where they could be used in the best.  One area that could be best suited for AI and ML in Cyber is in task automation and threat modeling.

But as I think about it further, I don’t think I have ever seen any concrete case studies where AI and ML have really been used, with hard core numbers to actually prove the results.  In fact, as much as I read the news headlines every day, I don’t ever remember a vendor even talking about a case study. 

Well, that is until today, where I finally found an article which gives a glimpse as to how they are using AI and ML, and some of the benefits that they have derived from it.

Remember the one thing that Cyberattackers are after primarily is money.  They will get it at whatever way they can, whether it is draining your bank account with compromised credentials, or launching ID Theft attacks, etc. 

Because of this, the major credit card companies now have their guards up to the highest levels possible in order to not only protect their customers, but to minimize credit card fraud as much as possible.  With the sheer volume of electronic based transactions that occur on a daily basis around the world, there is no that human beings would be able to comb through all of that data to find any evidence of fraud or malicious behavior.

Therefore a leading credit card company, VISA, has embarked upon a massive program to incorporate AI and ML into their IT and Network infrastructures, for these very purposes.  They have finally released some of their numbers, and they will, frankly, quite astonish you:

*They have invested over $9 billion in AI and ML technologies;

*The have over 60 Petabytes of information and data that reside in their databases;

*AI and ML have been deployed in over 60 different technological components of VISA;

*One of their in-house tools, which is known as the “Visa Advanced Authorization” (aka “VAA”), can determine if a credit card transaction is fraudulent or not in just 300 milliseconds.  Because of its quickness, over $26 Billion of credit card fraud attempts were blocked in 2022;

*Visa has also developed a new tool called the “Visa Behavioral Analytics” to examine the qualitative aspects of credit card fraud.  In this regard, over 400 million authentication requests were compared against 12 million unique devices over a two-year time span.  Because of this, Visa was able to block over $2.2 Billion in credit card fraud.

While these numbers are truly astounding, there is always a flip as well.  For example, technology can make mistakes also, especially when it comes to flagging a fraudulent transaction, when actually, it was a legitimate one.  These are technically called “False Declines”, and a credit card company could lose business very quickly if this happens too often.

In fact, studies have even shown that after one False Decline, a customer will leave and get a new credit card, and this happens about 89% of the time.  To avoid this, and to keep their existing base, Visa has also invested heavily into Deep Learning technology to further understand the purchasing behaviors of their customers.  So far, this effort has proven to be successful, with the total number of False Declines declining as much as 30%.

But Visa has not forgotten about using the traditional tools of Penetration Testing and Vulnerability Scanning, and according to them doing these tests has prevented over $31 Million in fraud attempts from taking place.

My Thoughts On This:

Well, there you have it, a solid case study which points out the good that AI and ML can do.  But keep in mind also, that equally important is the human side of this all.  While it would be nice to have all of this automated, we are still not yet at that point.  Visa is full cognizant of this, because of that, they have launched various “Cyber Fusion Centers”, which is much like a SOC.

In fact, they even have acknowledged the fact that AI and ML works best when it used in conjunction tools and technologies that have been designed to detect fraudulent activity.    Honestly, it is quite refreshing to see that they take this stance.  Not many companies that I have written about have taken this viewpoint, it is either an all or none proposition.

If you want to get a deeper dive of using AI and ML in preventing financial crimes, you should download this eBook here:

https://www.pymnts.com/tracker/preventing-financial-crimes-playbook-august-2020/

Banks are also getting into the AI and ML game, and those with over $100 Billion in assets are going to be key players here as well.  To get more insight into this, check out this article here:

https://www.businessinsider.com/ai-in-banking-report

Finally, the source of this posting and the numbers presented come from:

https://www.darkreading.com/edge-articles/a-peek-into-visa-s-ai-tools-against-fraud

 

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