This Visa service extends a machine learning-based model to help anticipate the probability of token fraud. Through VPI, Visa aims to help financial institutions prevent fraud in a targeted way and enable more seamless and secure transactions for Visa cardholders.
VPI’s features
According to the official press release, tokenization is viewed as a compelling fraud-fighting technology that helps protect consumers’ account information from mal-intentioned actors, by replacing account numbers with a unique code. However, tokens may be illegitimately provisioned, and Visa found that token provisioning fraud losses reached an estimated USD 450 million globally, in 2022 alone. Moreover, Visa stated that despite tokenization being one of the most secure ways to transact, fraudsters continue to use social engineering and other scams to illegitimately provision tokens. Thus, VPI is designed to leverage Visa’s network and data insights to help clients detect and prevent provisioning fraud before it happens.
VPI is a real-time fraud predilection score between 1 (indicating the lowest probability of fraud) and 99 (indicating the highest probability of fraud) provided to issuers for each token provision request. The product uses a segment-level supervised machine learning model to identify patterns in past token requests across devices, e-commerce, and card-on-file tokens to help predict the probability of token provisioning fraud.
The VPI score is intended to provide financial institutions with a series of capabilities, including:
- Fraud prediction, which allows issuers to detect provisioning fraud and decline a token provisioning request before fraud occurs.
- Precise separation of fraudulent activity from non-fraudulent activity reducing the number of declines.
- An increased number of legitimate provisioning requests, increased payment volumes, and continued trust in the card payment network.
According to the global card issuing company, VPI was launched in a market where most financial services operate digitally. This demands strong network security and providing clients with proper technologies to ensure customer data is protected, wherever transactions take place. Visa also stated that VPI is currently available to clients across the world, as a part of Visa’s suite of services.
More about Visa’s fraud prevention
Visa is a worldwide digital payments company, that facilitates transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. More than that, it has been working with more than 8,000 financial institutions globally to help identify and prevent fraud.
Along with the newly launched VPI, Visa also developed past tools in fraud prevention such as the Merchant Risk Intelligence Suite (VMRI). Through this, the company intends to leverage advanced analytics and data to help merchants authorise secure transactions and make more informed decisions while handling disputes. VMRI helps merchants analyse their transaction data against industry benchmarks and pinpoint where they excel and where they fall short. The service also provides helpful metrics, including authorisation rates, and fraud rates.
