Visa EU Steps Up Fight Against Fraud

VISOR is an advanced technology that further scrutinises card transactions to ensure that irregular patterns of spending are highlighted and investigated. It is the latest in a growing array of applications that Visa has launched to combat fraud: - In the high street, chip and PIN. Cardholders will use their four digit number instead of a signature. - On the web, Verified by Visa, is a cardholder authentication service that is predicted to reduce online fraud by 80% For other mail order and telephone order transactions there are: - CVV2 - Card Verification Value 2 indicates that the person making the transaction is in possession of a valid card - AVS - the Address Verification Service indicates that the address a cardholder has supplied to a retailer corresponds to the one registered to that card Visa has partnered with Fair Isaac, the world leader in decision management technology, to develop VISOR. It uses an advanced neural network that delivers a highly accurate risk score by analysing the spending behaviour of each cardholder along with the profile of each merchant. VISOR is available to all of Visas European Member banks and can be used to minimise losses on Visa card transactions where these are processed through VisaNet*. It is easy and cost effective to implement for banks, as there are no hardware costs, no systems integration requirements and no need to invest additional time to train the neural networks. Banks can use it as a single, stand-alone system or to complement their existing fraud systems. Prior to launch, three financial institutions: Barclays Bank International in Germany, ICS in the Netherlands and Nationwide Building Society in the UK, successfully piloted VISOR. The system has now gone live to a limited number of other banks and a full roll-out is planned from the beginning of the year. VISOR combines Fair Isaacs Falcon Fraud Manager solution with Visas own processing system, VisaNet. In Europe, VisaNet processes three billion credit and debit card transactions a year from all over the world, so it can use this extensive data to help detect the latest fraud trends and pinpoint emerging hot-spots. Fair Isaacs Falcon uses proven neural network and predictive technologies to identify any suspicious transactions.