Press release from Business Wire India
Source: Visa
Wednesday, August 29, 2012 02:48 PM IST (09:18 AM GMT)
Editors: General: Consumer interest; Business: Advertising, PR & marketing, Banking & financial services, Business services, Defence & security, Information technology, Major diversified industrial groups; Technology
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Smarter Security Systems for Indian Banks
Real Time Anti-Fraud Systems set to revolutionize fraud detection
Mumbai, Maharashtra, India, Wednesday, August 29, 2012 -- (Business Wire India) -- Visa Inc. (NYSE: V) has introduced for the 1st time in India advanced fraud prevention technologies to step up security for India's banks and provide greater protection for Visa cardholders. The new smarter, self-learning solutions, Visa Advanced Authorization (VAA) and Visa Risk Manager (VRM), offer financial institutions unprecedented levels of real time protection and responses across Visa's entire global network.
The move reinforces Visa's leadership in the market and is likely to sit well with the regulatory direction that recently stressed the need for all India's banks to adopt proactive real-time fraud detection, increase consumer protection, and proactively identify and deny fraudulent transactions.
Visa is now fighting back with new technology to detect these emerging threats and help shut them down on the spot. VAA VRM also has the ability to pinpoint and address coordinated attacks on multiple accounts in real time. In the year 2010 INR 8,250 crores (or USD 1.5 billion dollars) global fraud avoidance opportunity was identified by Visa Advanced Authorization. By relying on one of the most advanced electronic payment networks, Indian banks will now have access to a risk management tool that get smarter with every transaction processed.
Uttam Nayak, Group Country Manager - India & South Asia, Visa said "Security remains a foundation of Visa's business and Visa Advanced Authorization and Visa Risk Manager will now provide unparalleled levels of protection for Indian financial institutions and their customers. Visa's unique ability to analyze up to 24,000 transactions per second that cross our global network and then immediately act on that intelligence, is what separates this from other local or international systems. We can literally spot a needle in the haystack."
He added, "As we move deeper into semi-urban and rural areas tools like VAA will be critical in increasing consumer confidence and ultimately in growing electronic payments."
VAA is the first-of-its-kind technology that "scores" card transactions against their fraud potential based on the global activity and trends across the entire Visa network. The vast number of transactions passing across the network enables VAA to provide issuers with a risk score with unprecedented accuracy in real time.
VRM enables banks to turn VAA's unique global insight into immediate action by creating custom responses to decline or query suspicious transactions in real-time. Given the different criteria for different institutions, VRM lets issuing banks tailor their responses in line with their risk profile and their risk criteria.
Currently, fraud detection is primarily based on identification, alarm and response. However, it is difficult to identify global fraud schemes if you have limited exposure to them, response times can be too slow to stop the fraud once the alarm has been raised, and being alerted to fraud once it has occurred often sees reactive responses that come too late.
The new Visa system removes these risks and instead provides a proactive system that can alert early and act immediately - greatly reducing the number of fraud attempts and the number of successful fraud attempts. What's more the new system is self-learning remembering and recalling all new cases and trends.
Visa's announcement has been well received by the industry and many are taking the opportunity to stay one step ahead of the fraudsters.
"Securing and building trust in the card payments landscape is of paramount importance to us. To ensure optimum consumer protection, we are securing all our payment channels with participation in two factor authentication for eCommerce, issuance of EMV / Chip cards and implementation of Visa's real-time fraud solution for monitoring domestic and international transactions", said, Mr. Mahesh Rajaraman, Senior Vice President & Head of Risk Control, Payment Business & Retail Assets, HDFC Bank.
Mr. Jairam Sridharan, Head of Consumer Lending & Payments, Axis Bank, said, "Building customer confidence in the security around electronic payments is important. With the RBI guidelines around securing card present transactions in the country, we have implemented Visa's real-time fraud solution to further strengthen our transaction monitoring capabilities."
Mr. Uday Shetye, Deputy General Manager, Operations, New India Co-operative Bank Ltd., said, "As a new entrant in the payments industry we look to global payment technology companies like Visa for providing effective fraud risk solutions. We are delighted with the implementation of a real-time fraud solution like VAA VRM. This solution is secure, scalable and reliable, to ensure effective fraud risk management."
Description of VAA VRM works:
Ashok is a customer of ABC Bank, he uses his cards at retail outlets in his town and for booking movie tickets online. One day, his card was used multiple times at a departmental store in the US. Normally, Ashok would have realized this when he got an SMS or worse, when he got the statement; however his Bank had VAA VRM.
VAA VRM detected the second transaction as a suspicious one and flagged it for the bank to review. It then blocked subsequent attempts on the card as per the rules set by his bank. This incident could have been very traumatic for Ashok, but averted because of VAA VRM. This made Ashok a happy and confident card user.
The bank was able to block the card and initiate the process of reversing the transitions to Ashok much before he would have been able to dispute the transaction in a pre VAA VRM scenario.
What is Visa Advanced Authorization?
Visa Advanced Authorization is the first-of-its-kind security technology that analyzes and scores every Visa transaction for its fraud potential based on a global view of fraud across the entire Visa network.
The risk score is generated from a real-time review of multiple aspects of each transaction including the cardholder's previous activity and similarity to other suspicious transactions across the entire Visa network. The issuer can use this valuable information to decide in real time whether or not to authorize the transaction.
The system will be able to more finely target different types of fraud - even as they emerge - enabling issuers to more accurately isolate fraudulent transactions from legitimate ones.
What is Visa Risk Manager?
Visa Risk Manager helps financial institutions easily create, test and execute card authorization rules to help issuers decline fraudulent transactions. New rules can be deployed within minutes, responding to fraud trends as they evolve. Visa Risk Manager provides a number of capabilities including:
-- Visa Real Time Decisioning: This gives financial institutions the capability to allow Visa to act on their behalf to decline or forward to the issuer for action, high-fraud-risk transactions using predefined rules created by the issuer. This real-time service addresses potential fraud as it flows through Visa so it never needs to reach the issuer.
-- Visa Case Manager: After transactions have gone through the issuer's normal authorization process, the Visa Case Manager web application enables issuers to view, prioritize, and manage transactions that require further investigation.
VAA and VRM is a combined solution for comprehensive fraud prevention, enabling card participating banks to better identify and stop fraud before it occurs. VAA can analyze a transaction in milliseconds and provide the card-issuing banks a risk score with unprecedented accuracy. Consecutively, VRM allows these banks to streamline decision-making, so they can turn insight into action. This remarkable speed and clarity can allow them to prevent fraud from occurring in the first place.
For further information on VAA and VRM please visit: http://www.advancedauthorization.com/
About Visa Inc.: Visa Inc. is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks-VisaNet-that is capable of handling more than 24,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com .
CONTACT DETAILS
Anuja Sharma, Visa, +91 9004604426, ansharma@visa.com
Mihir Mukherjee, Edelman India, + 91 9987556960, mihir.mukherjee@edelman.com
Vaishnavi Ramakrishnan, Edelman India, + 91 7738015770, vaishnavi.ramakrishnan@edelman.com
KEYWORDS
CONSUMER, MARKETING, BANKING, BUSINESS SERVICES, DEFENCE, IT, GROUPS, TECHNOLOGY
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