Visa launches 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.
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 because of 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.
“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,” added McSherry.
Visa Tool Is Unique – Brand Agnostic Solution
Most financial institutions use 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.
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