💳 Visa 💳 implements an updated A2A Protect solution to combat APP fraud🪓

💳 Visa 💳 implements an updated A2A Protect solution to combat APP fraud🪓

The expanded version of the solution uses a unified risk score based on technology developed by the British company Featurespace, which Visa acquired in 2024. Featurespace specializes in AI-based transaction monitoring for fraud prevention.

🎯 The problem: A2A transactions are becoming increasingly popular worldwide. According to the company's forecasts, the volume of direct account-to-account payments will reach USD 5.8 trillion by 2028. This also means a significant increase in the risk of APP fraud, against which victims often have limited protection.

📝 Reference

📎 Authorised push payment fraud (or APP) occurs when a fraudster impersonates a legitimate payment recipient in order to deceive the victim into authorizing a transaction.

📎 To attract victims, fraudsters actively use social engineering: 21% of affected individuals encountered fraudsters on social media, while 10% were deceived through messaging applications.

📎 According to Visa data, one in three customers in the United Kingdom🇬🇧 has been a victim of APP fraud. This type of fraud accounts for 40% of the total damage caused by fraudsters.

📎 Banks identify only around 25% of APP fraud cases. Because APP losses are generally not reimbursed, affected customers often leave their bank. 52% of respondents said they would end their relationship with their bank if it failed to act, and 15% of fraud victims actually did so.

🎯 What Visa proposes

🔹 The A2A Protect solution uses AI analysis and transfer-learning techniques to alert banks to potential risks. The analysis uses data from across the Visa network, rather than from individual systems. As a result, a payment intended for a fraudster can be identified and blocked in real time, without the bank having to develop and train its own models.

🔹 According to the company, during the first 6 months after implementation, the tool's fraud-detection effectiveness increased by 75%, while false positives fell by 40%.

✍️ Context: one year ago, the Mastercard network implemented a similar solution in the United Kingdom. One factor that likely accelerated the development of such protection tools was the decision by the Payment Systems Regulator (PSR) to introduce 50:50 liability for APP fraud cases.

#news #Europe #fraud #background

🎭 From local bank transfers to Apple Pay worldwide: payment solutions for high-risk sectors at PayPlanet @pay_planet