Navigating the New Security Landscape
In today’s digital age, cybercrime presents significant challenges, overshadowing the potential of our interconnected world. As we navigate this shifting landscape, the numbers speak volumes about the urgency of the situation: a staggering $40 billion in fraud was prevented by Visa in 20231. This, alongside the year-over-year increase of 159% in blocked fraud in December, is a testament to the growing sophistication of e-crime and the escalating war against cyber threats2.
Visa’s Security Summit 2024, which took place in Dubai on March 6th and 7th, explored the current challenges presented by the evolving global threat landscape and offered insight into the ways in which Visa continues to build trust and fight emerging threats.
A changing environment
The economic and trust impact of cybercrime is significant. With global financial losses due to scams skyrocketing to $1 trillion and ransom payments doubling in just one year, the stakes are higher than ever3. In this climate of digital distrust, the Visa logo has become a beacon of security, enhancing the perceived trustworthiness of merchants fivefold. It's not just about preventing monetary loss; it's about preserving the bedrock of consumer confidence.
Meanwhile, the complex geopolitical landscape poses significant challenges, offering opportunities for cybercriminals to exploit digital fragmentation. This, coupled with the democratization of AI in cybercrime, has lowered entry barriers, leading to a surge in attackers and sophisticated tactics like data extortion and Stealer malware.
The largest extortion often exploits third-party vulnerabilities, highlighting the interconnectedness of our digital supply chain. It's a stark reminder that securing this ecosystem is not just a responsibility—it's a necessity.
The paradigm shift
The world is currently experiencing a paradigm shift in its approach to combating fraud and enhancing security in digital transactions. By providing a flexible framework that adapts to the dynamic nature of security threats, Visa aims to empower stakeholders across the payment ecosystem to stay ahead of emerging risks. This comprehensive approach integrates physical, digital, and human elements of security, recognizing the interconnected nature of modern security challenges.
Through the robust infrastructure of its global network, Visa processes 76,000 transactions every second, showcasing its capacity to handle the immense volume of daily digital transactions4. This vast network not only enables swift and secure transactions, but also provides Visa with unparalleled visibility into potential fraud activities. Through proactive measures and advanced fraud detection systems, Visa successfully prevents large volumes of potential fraud, underscoring its commitment to maintaining the integrity of the payment ecosystem and safeguarding the interests of consumers and businesses alike.
Countering the threat
A strategic shift in risk management from a defensive to a strategic enabling function mirrors global trend. Risk management is no longer a siloed afterthought but a key component of strategic planning. Visa's risk mitigation products and services have become the fastest-growing value-added service, a testament to its expertise and commitment to transaction security and business success.
Balancing robust security measures with minimizing transaction friction is crucial for enhancing trust and fostering business growth. Visa's comprehensive suite of solutions and services, covering the entire transaction lifecycle, is a holistic approach that supports cardholder payment security needs.
From the Visa Token Services and Visa Provisioning Intelligence, which secure the pre-transaction phase, to Visa Customer Authentication Services and the new Digital Acquisition Framework, which streamline authentication, Visa is at the forefront of innovation that boosts trust.
Meanwhile, the evolution from Visa Advanced Authorization to Visa Deep Authorization marks a significant advancement in fraud detection capabilities. By utilizing deep learning and AI, Visa processes vast datasets to identify and respond to fraudulent patterns with unprecedented accuracy and speed. This innovative approach to fraud detection aims to bolster the security of transactions across Visa's extensive network.
Moreover, the enterprise-wide Visa Advanced Authorization and Visa Risk Manager solutions represent a unified strategy for detecting fraud across both Visa and non-Visa transactions, streamlining the fraud management process for issuers. Additionally, the Visa Account Attack Intelligence service plays a crucial role in pre-emptively securing transactions by providing alerts and blocks for enumeration attempts.
For merchants, Visa's Decision Manager offers managed fraud services designed to mitigate risks and protect revenues. This tool leverages advanced analytics and customizable rules to help merchants identify and prevent fraudulent transactions. Post-purchase, Visa's dispute resolution platforms, including VRAD, VROL, and Verifi/RDR, are engineered to optimize the dispute management process, expediting the resolution of disputes and minimizing the administrative burden and financial impact associated with contested transactions.
In conclusion, it is evident that combating fraud requires a multifaceted approach that extends beyond mere defense. It's about enabling a secure, seamless experience that promotes trust and growth for all stakeholders in the digital ecosystem. By continuously advancing technologies and services, the industry as a whole remains vigilant against the ever-evolving landscape of security threats, ensuring that the digital economy remains a space of opportunity, not vulnerability.
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1 Visa Payment Fraud Prevention Team
2Flashpoint data
3Flashpoint data
4Visa Fact Sheet
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