AI’s Role in ID Verification & Fraud Prevention in Fintech
Finserv investment in ID verification & fraud prevention
In the opening months of 2024 alone, a string of new product launches from across the industry have been announced to further protect against fraud and enhance ID verification.
Just as fraudsters are leveraging Gen AI capabilities to further the scope of malicious activities, so too are financial services providers, FIs and fintechs using Gen AI to power anti-fraud solutions.
A prime example is the new Visa Account Attack Intelligence (VAAI) Score solution, introduced by leading payments processor Visa to help identify the likelihood of enumeration attacks in card-not-present transactions.
With Visa’s reach extensive, its new solution, announced in May 2024, has started to cut down on the 33% of enumerated accounts that have experienced fraud within the first five days of a fraudster gaining access to payments information.
Mastercard has also launched Decision Intelligence Pro, an upgrade to its existing Decision Intelligence solution. This transaction risk tool assesses the relationships between multiple entities surrounding a particular transaction.
Visa and Mastercard are not the only leading financial services providers to scale their anti-fraud efforts. Leading UK-based neobank Revolut has launched an advanced AI scam detection feature to protect consumers from card scams at the point when they are being scammed. This breaks the ‘spell’ of the scammer before money can be sent to the criminal.
So, while AI enables fraudsters to scale their malicious activities, financial leaders are also using the same tools to combat the rising tide of fraud, to keep on top of the latest in ID verification and protection against fraud.
