Now that security measures against payment fraud have become almost foolproof, fraudsters are targeting the weakest link: people. They do this using AI, with fake content that is indistinguishable from legitimate documents. Visa is fighting back with three action plans.
Declining fraud rate in e-commerce
Visa, with 4.3 billion cards accounting for 335 billion payment transactions per year, has invested 10 billion euros in payment security over the past five years. The company is a pioneer in online payment security and technological innovation, such as smart cards, 3D Secure for online authentication, biometric authentication and fraud detection tools that have been using AI for 30 years.
Visa blocks more than 150 million fraudulent transactions per year, thanks to more than hundred experts in cybersecurity centres who monitor the network 24/7. It works: the fraud rate in e-commerce in Europe continues to fall steadily. But fraud is evolving. Now that security technologies have become almost infallible, fraudsters are circumventing these security measures by attacking the weakest link: humans. We have moved from technological fraud to social fraud…
Fraud via AI
Today, we are living in an era where nothing can be trusted at first glance. AI makes it possible to create content that is indistinguishable from legitimate business communications. This opens up opportunities for online fraud using fake emails, fake bank advisors, fake trading websites, fake documentation…
People who confuse AI-generated content with real content are almost five times more likely to be scammed (63% versus 14%). Those who share content without verifying it are almost twice as likely to be scammed (33% versus 17%). Victims of scams spend an average of 14 days resolving the issue, which is equivalent to 70% of a month’s work. Fraudsters exploit emotion and urgency. The average financial loss is 147 euros per person.
Retailers are vulnerable
Even more worrying is the fact that not only criminals but also legitimate customers can abuse the system. AI makes false claims credible: think of false invoices or false delivery photos. Traditional fraud signals based on visual inspection, documentation checks or the authenticity of conversations are becoming unreliable. Retailers are particularly vulnerable in this area: after all, they are under pressure to keep the customer experience smooth, and they automate many refunds and disputes.
Visa is adapting to this new fraud landscape with three clear action plans: strengthening cooperation with the sector, educating customers and improving products with the help of AI. Curious about the details of these measures? Julien Gabillet, Lead Risk Director at Visa Europe, will reveal more details at the RetailDetail Omnichannel & E-Commerce Congress on 19 March in Brussels. Also on stage that day: Laura Toledano, General Manager Western Europe at Zalando, Jennifer Nemry, who will explain Delhaize’s e-commerce strategy, founder Magalie Aerts of the colourful fashion brand Les Jumelles, and omnichannel expert Gino Van Ossel (Vlerick Business School).
You can reserve tickets via the button below. Don’t wait too long: this congress has been sold out every year in recent years.
