AI-driven fraud attempts surge 200% during discount seasons
Visa reported that fraudulent transaction attempts surged 200% during a late 2024 holiday weekend as scammers increasingly adopted AI tools to execute phishing, fake merchant sites, and travel fraud schemes. The payment processor blocked 85% more suspected frauds on Cyber Monday and has invested over 11 billion dollars in anti-fraud technologies in recent years.
What happened
Visa reported that fraudulent transaction attempts increased 200% globally during a holiday weekend in late 2024, in part due to adoption of AI tools by scammers. During Cyber Monday alone, Visa blocked 85% more suspected fraudulent transactions compared to the previous year.
Reported impact
Scammers using AI have exploited the increase in shopping and travel during discount seasons to execute various fraud strategies. Common tactics include phishing and social engineering via emails and text messages impersonating trusted companies, creation of fake merchant websites offering products at unrealistically low prices, and fraudulent travel websites offering nonexistent flights and accommodations.
Governance controls
Visa reported investment of more than 11 billion dollars over the preceding five years in advanced technologies to combat fraud and protect consumers.
Classification
Sources and evidence
Sources not yet published
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