With the world all set to become fully digital, payment fraud soared exponentially in early 2023 according to Visa’s Report. Hackers have developed means to tackle the conventional modes of cybersecurity. However, retailers and e-commerce professionals have developed a new technology to tackle this growing concern. They are turning towards Fraud prevention systems. It has been found quite impressive in outsmarting attackers. Milestone has been the Visa’s Biannual report published in the recent past. It sheds light on payment fraud and how AI can combat it.
1. Alarming Ransomware Surge
According to Visa’s report, there have been 460 ransomware attacks in March this year. The report includes attacks from all over the world. It marks a staggering 91% increase in attacks committed in February. When we compare it to 2022, the overall increase is 62%. Not only has the frequency of attacks intensified, but they are now carried out more comprehensively, ensuring maximum damage to the victim’s assets.
2. Cryptocurrency Vulnerabilities Exploited
In a shocking revelation, Visa’s report further revealed that in 2022, around $1.3 billion in cryptocurrency had been stolen by fraudsters. Those who deal in cryptocurrency tend to make smart contracts. Fraudsters operate by exploiting the vulnerabilities in these smart contracts, depicting their sound knowledge and adaptability. The report also hinted at a 40% increase in enumeration attacks and a 58% increase in fraud investigations. E-commerce traders have been on the receiving end of most of these heinous activities.
3. Victims of attacks
With nearly the whole world embracing E-commerce and online retail, hackers are developing new AI-based strategies to dodge all the stakeholders and penetrate through systems via phishing, social engineering and identity-driven attacks to take control of the proceedings and then commit theft or ask for ransom in exchange for control. According to Visa’s report brick and mortar retailers have only experienced 20% of the total attacks, which further cements the fact that E-commerce is the bullseye. ATO( Account Takeover) accounts have become prevalent. The victims of it are the platforms that rely on small transactions made in real-time to keep their customers or consumers interested. These kinds of transactions are of momentous importance for the survival of the gaming industry.
4. Role of AI
According to Visa, the proliferation of attacks and its increased success are due to AI-driven strategies. AI equips attackers in such a way that they are harder to detect. One example of such offensive AI is FraudGPT, accessible on the dark web. Those with the luxury of accessing it can quickly hatch strategies using it and penetrate the defences of various businesses that are defenceless against such technology.
5. Visa Pioneering the defence
To the great relief of professionals who rely on online businesses, Visa has come to their rescue. The company has developed strategies using AI to combat the heinous acts of ransomware attacks at a global level. A 24/7 functional Risk Operational Centre has become a refuge for E-commerce merchants. It processes the transactions in real time and mitigates any potential risks. It has effectively dealt with nearly 2,000 fraud incidents in just six months. Visa has blocked over 53 million transactions that were deemed fraudulent. The commitment of Visa has been evident through its $9 billion investment to improve cybersecurity and reduce the chances of fraudulent transactions in the last five years. Much of this has been dedicated to hatching AI-driven strategies and enhancing data infrastructure. It will provide Visa with more than 60 AI capabilities. It will also automate the overall procedure, warding the risk of human error and minimising labour costs.
AI has played a significant role in shaping the dimensions of many fields, including cybersecurity. Though the new technology has shown how fraudsters can manipulate it to serve malicious acts, Visa has looked on the brighter side of things and how it can provide e-commerce merchants with effective solutions by employing AI. The events of the recent past have shown how technological advancements can be a weapon for both the bad and sound elements of society.