VISA Invests in an AI Future

As digital transactions skyrocket, so do the risks that come with them. But thanks to rapid advancements in artificial intelligence (AI), financial fraud no longer has the upper hand. Visa, a global leader in payments, is spearheading innovation in this space with the deployment of ARIC Risk Hub, a cutting-edge fraud prevention platform powered by its recent acquisition, Featurespace.

The ARIC Risk Hub is not just another fraud detection tool – it’s a transformative system that learns and adapts to customer behaviour in real-time, using AI to distinguish between genuine activity and suspicious anomalies. In Norway, Visa’s partnership with Eika Gruppen, an alliance of 46 local banks, has already demonstrated the potential of this technology. Within a year of implementation, Eika saw a 90% drop in phishing-related fraud, showing how AI can make an immediate and meaningful impact.

AI’s Broader Role in Combating Fraud

While Visa’s solution is a standout, it’s part of a much larger trend. Across the globe, financial institutions are turning to AI to tackle fraud that is growing in volume and complexity. A 2024 survey by BioCatch revealed that 86% of financial institutions in EMEA (Europe, the Middle East, and Africa) now use AI to combat fraud and financial crime. In the Asia-Pacific region, this number stands at 82%, while North America follows with 75%, reflecting a global shift toward smarter, data-driven security.

AI systems excel at analysing massive volumes of transactions in milliseconds, far beyond human capability. By recognising behavioural patterns and anomalies, AI can flag potentially fraudulent activity instantly, reducing the need for time-consuming manual reviews and helping prevent both small-scale scams and large, coordinated attacks.

Across the industry, a growing ecosystem of AI tools is being developed to tackle fraud from multiple angles. Machine learning models are being trained to detect account takeovers and identity theft with increasing accuracy, while natural language processing (NLP) is being used to analyse scam-related communication in real time, flagging phishing attempts before they reach the target. Computer vision tools are being used to validate ID documents through image analysis, and predictive analytics is helping banks forecast fraud trends before they escalate. These technologies, when used together, form a layered defence strategy that evolves just as quickly as the threats do.

The Growing Threat and AI’s Counterbalance

Of course, the story doesn’t end with detection. As AI tools improve, so do the fraudsters’ tactics. The use of deepfakes, synthetic identities, and even AI-generated phishing attacks is becoming more prevalent. This constant escalation creates what some experts call an “AI arms race” – but one where organisations with the right defences in place have a clear advantage.

This is where AI-powered platforms like ARIC shine. Unlike traditional rule-based systems that rely on static parameters, ARIC learns from every interaction, constantly updating its understanding of what “normal” looks like. This adaptive learning is what enabled Eika to reduce phishing losses so drastically, and it’s what makes AI essential for staying ahead in this evolving threat landscape.

The Future of AI-Driven Security

As the fight against fraud continues to evolve, Visa’s investment in AI through Featurespace is a reassuring sign of how seriously industry leaders are taking this challenge. By leveraging behavioural analytics, adaptive learning, and global data networks, Visa is positioning itself and its clients on the frontlines of fraud defence.

In the words of Tim Vanderham, COO at Featurespace, their mission is “to make the world a safer place to transact.” That mission, backed by Visa’s global infrastructure and decades of AI experience, offers businesses and customers alike the confidence that security isn’t just catching up, it’s getting ahead.

AJC can help in making this mission a reality through in-depth advisory services, as AJC guides organisations in building robust AI governance structures, optimising performance, and reducing associated risks. Whether it’s integrating automation into workflows or leveraging AI for data-driven insights, AJC enables clients to adopt smart solutions that support long-term success while maintaining trust and accountability across stakeholders.

Whether you’re a fintech startup, a retail bank, or a global enterprise, one thing is clear: the future of fraud prevention is AI-powered, and it’s already making a difference.

Contact us on 020 7101 4861 or email us at info@ajollyconsulting.co.uk if you think we can help.

Image is AI generated.