In an unprecedented effort to combat the growing threat of online scams, Visa has launched its Visa Scam Disruption (VSD) initiative. This department is designed to both protect consumers and dismantle scam networks at their core. Exclusive insights from Visa reveal that this initiative has already saved victims an estimated $350 million in 2024, adding to the impressive $40 billion in fraud blocked by Visa’s Payment Ecosystem Risk and Control (PERC).
Why Visa’s Scam Disruption Initiative Matters
According to a report from Feedzai, fraud, and scam-related losses exceeded $1 trillion globally last year. Despite this alarming figure, few resources exist to combat the vast international scam ecosystem. Visa’s approach could serve as a blueprint for other companies aiming to take proactive measures against fraudsters.
Similar to ransomware gangs, online scammers operate at a massive scale, using sophisticated tactics such as romance scams, phishing, and deepfake technology to deceive victims.
What Is Visas Scam Disruption (VSD)?
VSD is modeled after cybersecurity threat intelligence units, proactively identifying and shutting down fraudulent activities before they reach victims. Visa has invested $12 billion in technology over the past five years to enhance fraud detection and prevention capabilities.
Key elements of VSD include:
- Advanced AI and Data Analytics – Generative AI tools analyze massive datasets to detect fraud patterns and scam networks.
- Cross-Platform Monitoring – Visa’s intelligence team investigates scam activity beyond its payment network, tracking operations on the dark web and social media.
- Fraud Disruption Team – Works with industry partners and law enforcement to dismantle fraudulent merchant websites and block scam-related financial transactions.
- Proven Success – VSD recently took down 12,000 fraudulent merchant websites linked to a dating app scam, preventing over $27 million in losses.
Visa’s Multi-Billion Dollar Investment in Security
Visa has invested $12 billion in technology over the past five years to bolster its cyber, fraud, and risk management tools.Paul Fabara, Visa’s Chief Risk and Client Services Officer, stated, “At the same time, we have made a significant investment in our best weapon against scammers: our people. By combining our proprietary technology with the unique experiences and perspective our talent brings, we can more effectively identify and defeat even the savviest scammers.”
How Visa Scam Disruption Works
Visa’s new scam detection model is inspired by cybersecurity threat intelligence units. The initiative includes:
- A dedicated intelligence team that goes beyond Visa’s network to monitor scammer activity across the dark web, social media, and other platforms.
- A disruption team that collaborates with industry partners and law enforcement to dismantle fraudulent operations, including shutting down fake merchant websites and tracking scam-related financial accounts.
- Use of Generative AI (GenAI) to analyze massive amounts of data, identify fraud patterns, and detect scam operations at an unprecedented scale.
- Cross-disciplinary expertise from professionals with backgrounds in cybersecurity, fraud prevention, data science, and law enforcement.
One of the initiative’s biggest successes so far has been the takedown of 12,000 fraudulent merchant websites linked to a scam preying on dating app users. Victims were tricked into running background checks on fake profiles, unknowingly signing up for fraudulent recurring payments. This operation alone prevented more than $27 million in potential victim losses.
A Growing Fraud Threat
The rise of artificial intelligence has made fraudsters more effective. AI is now used to create highly personalized phishing emails, generate realistic deepfake scams, and even automate scam operations. As these tactics become more sophisticated, traditional fraud prevention methods are no longer enough.
How Corepay is Helping Merchants Stay Protected
As fraud continues to rise, businesses need payment solutions that integrate strong fraud prevention measures. Corepay provides merchants with an all-in-one payment processing solution that includes industry-leading fraud detection and prevention tools.
Corepay’s fraud prevention features include:
- Chargeback Prevention Services – Automated tools that help merchants mitigate chargebacks, reducing fraud-related disputes.
- Payment Orchestration – Smart payment routing that optimizes transaction success rates while minimizing fraud risks.
- Visa RDR – Corepay offers Visa RDR and real-time insights via our chargeback prevention platform, CB-Alert.
