Visa has built a digital tool that uses AI and proprietary data to help US financial institutions predict credit application fraud.
The Advanced Identity Score combines AI and predictive machine learning capabilities with application and identity-related data to generate a risk score for new account applications.
This, says the payments giant, helps reduce fraud, prevent hits to brand loyalty and trust, and eliminate operational costs due to remediation.
Visa says its technology generates a two-digit Fair Credit Reporting Act-compliant identity fraud score in near real-time to help prevent fraud loss at the point of credit or loan application.
The tool works by using AI to examine data points in areas including application velocity, fraud and suspicious activity and bankruptcy data. It also incorporates data from government agencies, third party data providers, law enforcement agencies, and self-reported data from consumers.
Melissa McSherry, global head, data, security and identity products and solutions, Visa, says: "Advanced Identity Score offers financial institutions a powerful tool to use on top of existing systems and processes to prevent identity related fraud."