We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa (V) Unveils Digital Tool to Fight Fraudulent Practices
Read MoreHide Full Article
Visa Inc. (V - Free Report) recently introduced a digital tool named Advanced Identity Score that will enable U.S. financial institutions fight new account and synthetic fraud, which induces loss running into billions of dollars for banks and credit unions.
Rational Behind the Initiative
The innovative tool combines the company’s AI and predictive machine-learning abilities with application and identity-related data to generate a risk score for new account applications. This will likely decrease fraudulent activities, such as new accounts opened with stolen identities, and protect customers against fake ID or account takeover fraud.
The breakthrough is also expected to improve brand loyalty and eradicate operational costs. The loss, estimated at $10 billion per year, is taken care of by the company with this current launch, which in turn, will offer some relief to customers.
Per Visa, U.S. cardholders spend 15 hours, on average, to resolve new account fraud and also undergo poor customer experience. New account fraud raises a major concern as more than 14.7 billion data records has been reportedly breached since 2013, which include sensitive information, such as name, tax ID number, address, etc.
The aforementioned initiative is taken at a time when financial institutions are having a tough time battling against fraud while onboarding as card-not-present transactions are on the rise during the COVID-19 pandemic crisis.
Visa’s goal is to help customers, merchants and financial institutions focus on cost-cutting during such uncertain times. Most financial institutions use a layered fraud- prevention strategy to combat identity-related forgery. However, many of the systems are rules-based with limitations and loopholes that may cause false positives or customer friction.
Advanced Identity Score helps financial institutions with informed identity risk decisions by generating a two-digit Fair Credit Reporting Act (FCRA)-compliant identity fraud score in near real-time. It is the only fraud solution harnessing virtually all U.S. approved/declined bank card application data and account-level fraud information to detect and prevent potential fraud.
The company’s AI allows it to examine data points in areas like application velocity, frauds, bankruptcy, etc.
Visa continues to invest in technology for further boosting its already leading position in the payments market, minimizing the impact of fraud and protecting consumer and merchant-oriented information.
Zacks Rank and Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 12.9% in a year’s time, outperforming its industry’s growth of 9.1%.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa (V) Unveils Digital Tool to Fight Fraudulent Practices
Visa Inc. (V - Free Report) recently introduced a digital tool named Advanced Identity Score that will enable U.S. financial institutions fight new account and synthetic fraud, which induces loss running into billions of dollars for banks and credit unions.
Rational Behind the Initiative
The innovative tool combines the company’s AI and predictive machine-learning abilities with application and identity-related data to generate a risk score for new account applications. This will likely decrease fraudulent activities, such as new accounts opened with stolen identities, and protect customers against fake ID or account takeover fraud.
The breakthrough is also expected to improve brand loyalty and eradicate operational costs. The loss, estimated at $10 billion per year, is taken care of by the company with this current launch, which in turn, will offer some relief to customers.
Per Visa, U.S. cardholders spend 15 hours, on average, to resolve new account fraud and also undergo poor customer experience. New account fraud raises a major concern as more than 14.7 billion data records has been reportedly breached since 2013, which include sensitive information, such as name, tax ID number, address, etc.
The aforementioned initiative is taken at a time when financial institutions are having a tough time battling against fraud while onboarding as card-not-present transactions are on the rise during the COVID-19 pandemic crisis.
Visa’s goal is to help customers, merchants and financial institutions focus on cost-cutting during such uncertain times. Most financial institutions use a layered fraud- prevention strategy to combat identity-related forgery. However, many of the systems are rules-based with limitations and loopholes that may cause false positives or customer friction.
Advanced Identity Score helps financial institutions with informed identity risk decisions by generating a two-digit Fair Credit Reporting Act (FCRA)-compliant identity fraud score in near real-time. It is the only fraud solution harnessing virtually all U.S. approved/declined bank card application data and account-level fraud information to detect and prevent potential fraud.
The company’s AI allows it to examine data points in areas like application velocity, frauds, bankruptcy, etc.
Visa continues to invest in technology for further boosting its already leading position in the payments market, minimizing the impact of fraud and protecting consumer and merchant-oriented information.
Zacks Rank and Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 12.9% in a year’s time, outperforming its industry’s growth of 9.1%.
Other companies in the same space, such as Mastercard Incorporated (MA - Free Report) , The Western Union Company (WU - Free Report) and Global Payments Inc. (GPN - Free Report) , have also rallied 15.4%, 13.2% and 11.1% in the same time frame, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>