The commercial launch of Visa Provisioning Intelligence (VPI), an AI-based solution created to stop token fraud at its source, was announced today by Visa, a leader in global payments. VPI, a value-added service offered to clients, rates the probability of fraud for token provisioning requests using machine learning.
This helps financial institutions prevent fraud in specific areas and makes transactions for Visa cardholders more secure and seamless.
By substituting a unique code for the account number, tokenization is a potent fraud-fighting technology that helps shield customers’ account information from dishonest parties. However, Visa discovered that token provisioning fraud losses reached an estimated $450M globally in 2022 alone. Tokens may be unjustly provisioned to dishonest actors.
“While tokenization is one of the most secure ways to transact, we’re seeing fraudsters use social engineering and other scams to illegitimately provision tokens,” said James Mirfin, SVP and Global Head of Risk and Identity Solutions at Visa. “With VPI, we’re leveraging Visa’s vast network and data insights to help clients detect and prevent provisioning fraud before it happens.”
VPI is a real-time fraud propensity 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. VPI 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 the following benefits:
- Improved fraud prediction by allowing issuers to detect provisioning fraud and decline a token provisioning request before the fraud occurs.
- Accurate 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.
