Visa Introduces Advanced Identity Score to Help Financial Institutions Prevent New Account Fraud
June 22 2020 - 7:00AM
Business Wire
Brand agnostic solution utilizes artificial
intelligence to identify risk so credit and loan applications can
advance with confidence
Visa Inc. (NYSE: V) today announced a digital tool to help U.S.
financial institutions with their efforts to combat new account
fraud – estimated at $10 billion a year – and give consumers
greater peace of mind.i
Advanced Identity Score combines Visa’s artificial intelligence
and predictive machine learning capabilities with application and
identity related data to generate a risk score for new account
applications to help reduce fraud, prevent negative impact to brand
loyalty and trust, and eliminate operational costs due to
remediation. With U.S. cardholders spending an average of 15 hours
to resolve new account fraud, Advanced Identity Score can decrease
the number of new accounts opened with stolen identities, protect
consumers against synthetic ID or account takeover fraud, save time
and help eliminate a poor customer experience.ii
“Visa’s mission to connect the world and enable individuals,
businesses, and economies to thrive is more important than ever
with Covid-19 affecting communities and all parts of the economy,”
said Melissa McSherry, senior vice president and global head of
Data, Security and Identity Products and Solutions at Visa. “As
consumers, financial institutions and merchants focus on
controlling expenses during uncertain times, the cost of new
account fraud in terms of money and time lost can be significant.
Advanced Identity Score offers financial institutions a powerful
tool to use on top of existing systems and processes to prevent
identity related fraud. This is the latest example of the value
that Visa brings with its scale and expertise in combining data
with AI to deliver advanced services that benefit participants in
the digital economy.”
Unique, brand agnostic solution
Most financial institutions employ a layered fraud prevention
strategy using multiple tools to combat identity related fraud, but
many legacy fraud prevention systems are rules-based with gaps and
limitations that may create customer friction or false
positives.
Advanced Identity Score helps financial institutions make more
informed identity related risk decisions by generating a two-digit
Fair Credit Reporting Act (FCRA)-compliant identity fraud score in
near real-time designed to help prevent fraud loss at the point of
credit or loan application. It is the only fraud solution
harnessing virtually all U.S. approved/declined bank card
application data and account level fraud data to detect and prevent
potential fraud.
Visa’s artificial intelligence examines data points in areas
including application velocity (the frequency of applications
within a period of time), fraud and suspicious activity, bankruptcy
data across consumer identity elements, while incorporating data
from government agencies, 3rd party data providers, law enforcement
agencies, and self-reported data from consumers. This combination
empowers financial institutions with a tool for risk management
that can adapt as criminal behavior changes.
“With more than 14.7 billion data records breached since 2013,
many of which include sensitive data such as name, tax ID number,
and address, new account fraud has been a consistently growing
challenge for financial institutions,” said Julie Conroy, research
director, Aite Group. “Financial institutions are looking for
solutions that can help effectively detect synthetic and stolen
identities at the time of application. The consortium data and
sophisticated analytics that power Visa’s Advanced Identity Score
promise to make it a valuable addition to financial institutions’
control framework.”
Additional Resources
- Learn more about Visa security in the Visa newsroom and Visa
Blog
- Follow Visa security updates on LinkedIn, Twitter and
YouTube
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments.
Our mission is to connect the world through the most innovative,
reliable and secure payment network - enabling individuals,
businesses and economies to thrive. Our advanced global processing
network, VisaNet, provides secure and reliable payments around the
world, and is capable of handling more than 65,000 transaction
messages a second. The company’s relentless focus on innovation is
a catalyst for the rapid growth of digital commerce on any device
for everyone, everywhere. As the world moves from analog to
digital, Visa is applying our brand, products, people, network and
scale to reshape the future of commerce. For more information,
visit About Visa, visa.com/blog and
@VisaNews.
i Combined estimated losses of new account fraud and synthetic
ID fraud, Javelin Strategy and Research, 2020 Identity Fraud Study:
Genesis of the Identity Crisis, April 2020.
iiJavelin Strategy and Research, 2020 Identity Fraud Study:
Genesis of the Identity Crisis, April 2020.
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version on businesswire.com: https://www.businesswire.com/news/home/20200622005251/en/
Visa Inc. Louis Cheng locheng@visa.com
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