The 2023 Visa Merchant Fraud Report highlights the evolving landscape of fraud and the crucial role of AI and automation in combating fraudulent activities. It emphasizes the importance of leveraging AI insights from Visa’s vast data to adapt to changing trends effectively. The report indicates that 98% of leading merchants are embracing automation, with only 1.3% still relying on manual review processes.
Furthermore, the report reveals that eliminating manual review processes does not lead to an increase in fraud rates; in fact, fraud rates may slightly decrease. The significant cost savings associated with automated strategies are highlighted, with potential savings of up to $2,500 per 1 million transactions. The data suggests that AI-powered decision-making can help maintain low fraud rates without manual intervention.
Moreover, the report discusses the prevalence of different types of fraud, such as new account fraud and digital fraud, emphasizing the need for preventive measures to protect consumers and merchants. It also touches upon industry trends, showcasing how industries like telecommunications have successfully reduced fraud rates through the adoption of tools like Decision Manager.
Overall, the report underscores the critical role of AI, automation, and data-driven insights in the fight against fraud, providing valuable insights for merchants looking to enhance their fraud prevention strategies and stay ahead of evolving threats in the digital landscape.
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