Latest news with #AnthonyWatson
Finextra
07-07-2025
- Business
- Finextra
Visa using AI to combat AI-driven fraud in New Zeland
Visa, a world leader in digital payments, is fighting back as scammers harness the power of artificial intelligence to target New Zealanders by using AI to combat AI. 0 Launching its latest Security Roadmap for New Zealand, the bold three-year strategy aims to protect consumers and businesses from rapidly evolving cyber threats. Scams and payment fraud in New Zealand are accelerating rapidly in both scale and sophistication, with AI-powered scams and digital fraud rising sharply across the country. In 2024 alone, scam and card fraud losses reached NZ$194 million[1], with small and medium sized businesses (SMBs) increasingly in the firing line. Unauthorised card fraud surged by 32% over the past 12 months[2], and online shopping scams have overtaken identity theft as the most reported scam type[3]. Despite this, 68% of New Zealanders chose not to report scam incidents[4], citing uncertainty around reporting channels. 'Visa used AI to stop more than NZ$273 million in fraud affecting New Zealanders in 2023 alone. And yet, as AI-enabled fraudsters evolve, we must move faster,' said Anthony Watson, Visa Country Manager for New Zealand and the Pacific Islands. 'That requires relentless innovation and continued investment in next-gen security tools and partnering across the ecosystem to stay ahead of criminals.' The increasing use of artificial intelligence by criminals is helping them mimic legitimate consumer behaviour, bypass traditional security checks such as SMS passcodes, and manipulate human psychology with alarming precision. Social engineering tactics such as phishing, ransomware, billing scams and card-not-present fraud are now commonplace, with SMBs particularly vulnerable. To combat this growing threat, Visa's Security Roadmap establishes the key areas for the investment of banks and financial institutions over the coming three years to: prevent enumeration attacks; modernise authentication; adopt a data-driven, risk-based approach to managing risks; strengthen resilience against AI-driven scams; enhance cybersecurity across the ecosystem; and secure digital payments with advanced protocols. Supporting New Zealand SMBs with fraud prevention tips To help SMBs protect themselves and their customers, Visa has also launched the SMB Fraud Prevention Toolkit - a suite of practical tips and resources to support small business owners. The toolkit provides step-by-step guidance on identifying, preventing, and responding to threats such as phishing, ransomware, billing scams, card-not-present fraud, and enumeration attacks. With a 95% increase in scam reports in 2023 and NZ$1.9 million lost to scams targeting businesses[5], the toolkit offers clear checklists, real-world case studies, employee training tips, and incident response plans. 'SMBs are the engine of New Zealand's economy and, increasingly, cyber criminals exploit the most vulnerable point in the payments' ecosystem: humans,' said Watson. 'This toolkit gives business owners in New Zealand, commonly a target for cybercrime, the knowledge and confidence to take control of their security.' The toolkit also promotes best practices including multi-factor authentication, employee awareness training, secure online transaction protocols, and real-time payment monitoring. It is designed to suit businesses of varying sizes and industries, and encourages a proactive approach to cybersecurity. Funding innovation through sustainable infrastructure investment Visa's Roadmap also highlights the importance of sustainable funding mechanisms, such as interchange, to maintain and improve fraud prevention capabilities. These mechanisms support the essential infrastructure behind secure payments, including AI systems, biometric authentication, 24/7 fraud monitoring, and tokenisation. 'Fraud prevention doesn't just happen - it's powered by sustained investment in technology,' said Watson. 'If we want to stay ahead of scammers, we need to ensure the ecosystem remains commercially viable for innovation to thrive. In markets where interchange fees have been significantly reduced, we've observed increased friction and higher fraud rates, leading to poorer customer experiences.' Visa continues to work closely with banks, acquirers, merchants, and government agencies to implement its security roadmap across the country and ensure New Zealanders are protected in an increasingly digital economy.
Techday NZ
03-07-2025
- Business
- Techday NZ
Visa launches Security Roadmap to combat AI-driven payment fraud
Visa has introduced a new Security Roadmap for New Zealand, targeting rapidly increasing incidents of AI-driven scams and digital payment fraud with a range of measures including real-time analytics, biometric authentication, and support for small businesses. Escalating payment fraud in New Zealand is reflected in recent figures showing NZD $194 million lost to scams and card fraud in 2024, according to the Ministry of Business, Innovation & Employment. The data also indicates a 32% rise in unauthorised card fraud over the past year, with online shopping scams now more prevalent than identity theft. Despite this growing threat, Consumer Protection NZ reports that 68% of individuals do not report scam incidents, often due to uncertainty regarding appropriate reporting channels. Anthony Watson, Country Manager for New Zealand and the Pacific Islands at Visa, commented on the company's approach to combating the threat. "Visa used AI to stop more than NZD $273 million in fraud affecting New Zealanders in 2023 alone. And yet, as AI-enabled fraudsters evolve, we must move faster. That requires relentless innovation and continued investment in next-gen security tools and partnering across the ecosystem to stay ahead of criminals." The adoption of artificial intelligence by criminals has made it easier for them to imitate legitimate consumer behaviour and bypass traditional security methods such as SMS passcodes. Common tactics now include phishing, ransomware, billing scams and card-not-present fraud, with small and medium sized businesses (SMBs) particularly exposed due to limited resources and technical capability. Visa's Security Roadmap outlines investment priorities for banks and financial institutions in New Zealand over the next three years. The main objectives are to prevent enumeration attacks, modernise authentication, adopt a data-driven and risk-based approach to risk management, strengthen overall resilience to AI-driven scams, enhance cybersecurity throughout the payment ecosystem, and secure digital payments using advanced protocols. SMB toolkit Recognising the vulnerability of small businesses, Visa has launched an SMB Fraud Prevention Toolkit designed to offer practical support and resources for business owners. The toolkit provides guidance on how to identify, prevent, and respond to a range of threats, including phishing, ransomware, billing scams, card-not-present fraud, and enumeration attacks. Data from Visa's toolkit materials show that scam reports increased by 95% in 2023, with businesses losing NZD $1.9 million to scams over that period. The toolkit supplies checklists, summaries of case studies, employee training guidance, and incident response plans. "SMBs are the engine of New Zealand's economy and, increasingly, cyber criminals exploit the most vulnerable point in the payments' ecosystem: humans," said Watson. "This toolkit gives business owners in New Zealand, commonly a target for cybercrime, the knowledge and confidence to take control of their security." The toolkit also encourages best practices such as multi-factor authentication, heightened employee awareness training, secure online transaction processes, and real-time payment monitoring. The resource is designed to be flexible, accommodating the needs of businesses across different sectors and sizes and urging a proactive stance on security. Ongoing investment Visa's strategy includes an emphasis on sustaining innovation through infrastructural investment. Particularly, the Roadmap points to the importance of funding mechanisms such as interchange, which support core investments in technologies—including AI, biometric tools, 24/7 fraud monitoring and tokenisation—that make secure payments possible. "Fraud prevention doesn't just happen – it's powered by sustained investment in technology," said Watson. "If we want to stay ahead of scammers, we need to ensure the ecosystem remains commercially viable for innovation to thrive. In markets where interchange fees have been significantly reduced, we've observed increased friction and higher fraud rates, leading to poorer customer experiences." Visa is continuing to work alongside banks, acquirers, merchants, and governmental bodies to implement the measures outlined in the Security Roadmap, aiming to address both consumer and business vulnerabilities in the evolving digital economy.
NZ Herald
05-05-2025
- Business
- NZ Herald
Hidden cost: how tighter payment rules could hurt Kiwis
A move to reduce payment fees further risks pushing up costs, stifling innovation, and putting small Kiwi businesses at risk. This article was prepared by Anthony Watson for Visa and is being published by the New Zealand Herald as advertorial. By Anthony Watson, Country Manager, Visa New Zealand & Pacific Islands Just over two years have passed since the Commerce Commission introduced interchange regulation intended to bring down the cost of payments to consumers and businesses in New Zealand. Now, it's proposing to tighten that even further. On the surface, the regulator's rationale seems simple: in its view, further capping interchange payments would help businesses lower their costs and therefore lead to cost savings for consumers. But there's a critical piece of analysis missing – if the regulation introduced in 2022 didn't deliver the savings promised, why will this round be any different? Before trying the same again, let's look at what's actually happening Interchange balances the risks and benefits for all parties to deliver secure, seamless payments. Many of the features New Zealanders now take for granted, such as contactless (PayWave), ecommerce and advanced fraud capabilities, are the result of sustained investment and global collaboration. Before reaching for more regulation, we need to understand what impact the current regulation has achieved. To date there is no clear, data-driven evidence to show that the 2022 caps delivered their intended benefits, nor is there a detailed cost-benefit analysis of the further regulation proposed. And that's important because, in some areas, there have been outcomes that run counter to the original intentions of the regulation. Take surcharging, for example. Despite guidance to encourage businesses to pass on lower costs, surcharging has become more prevalent - not less. This raises serious questions about whether further fee reductions would be passed on to consumers at all. A comprehensive assessment of what's already occurred is needed before introducing deeper regulatory intervention. Otherwise, how can decision makers be confident that this next step will deliver the intended outcomes? Regulation should be a response to proven problems Interchange encourages innovation and competition while contributing to the protection of New Zealand consumers and businesses from card-related fraud. In countries where card schemes operate under artificially low or compressed interchange, there has been evidence of a lag in terms of development and the introduction of new payments technology. We have a widely-acknowledged local example in Eftpos which, despite its initial success, does not offer contactless payments in New Zealand. This is largely due to Eftpos' zero-cost model which did not generate sufficient returns to re-invest in new technology. Singapore's Competition Commission, by comparison, concluded in 2013 that regulating interchange would create barriers to entry and since then has gone on to develop one of the most advanced digital payment ecosystems in the world. This is why any changes to how interchange fees are regulated should be grounded in robust analysis - not assumptions or generalisations. Regulation is an important part of a well-functioning market, but it should be balanced and used as a safeguard, not a sledgehammer. Without a clear demonstration that the current caps have failed, surely pushing ahead with further restrictions is premature, and uncertain. First, we must look at the other levers and elements in the picture. The risks of getting it wrong Let's be clear: slashing interchange further, without understanding the ripple effects, risks unintended consequences. We're talking about restricted access to affordable credit – especially for small businesses, and a slowing of New Zealand's economy with impacts on tourism, commerce and foreign direct investment. Let's focus on commercial cards. Used by many small and medium-sized businesses (SMBs) to manage cash flow, commercial cards could become unviable if further interchange caps are applied. A Retail NZ poll found that 92% of its member businesses used a credit card for purchasing business items. With SMBs representing 97% of New Zealand's businesses overall [1], introducing a cap could disproportionately affect their access to commercial credit products to manage their working capital requirements. When it comes to other methods of payment, all forms from cash to Eftpos, four-party debit and credit card models like Visa, or more expensive credit options like Buy-Now-Pay-Later (BNPL) come at a cost and provide different levels of additional value, convenience and security. While lower interchange may sound appealing, it would reduce the viability to deliver secure and convenient payment experiences. Our evidence shows that taking action on interchange in one, undifferentiated swoop is likely to have the opposite effect than the Commission intends. It will push consumers and businesses to other credit options, like charge cards or BNPL, which generally have a higher cost for consumers and businesses, immediately negating the benefits of any initial cost saving (and increasing surcharges if nothing else). It will likely result in lower authorisations for everyday payments (which means fewer sales for businesses and more frustration for consumers). And it will limit innovation and restrict choice, essentially shutting the door to new fintech competition entering the New Zealand market in future. Let's take a measured, evidence-first approach Visa supports a competitive, innovative, and secure payments environment in New Zealand that delivers great outcomes for consumers, businesses and the economy. And we support regulation that is backed by clear data and designed to deliver long-term value. At this point, we encourage the Commission to pause, step back, and conduct a full regulatory impact assessment. Without that, we risk undermining the very outcomes we're all trying to achieve. Because, when it comes to a system that is important in driving economic growth and tourism in New Zealand, we can't afford to get it wrong.
Scoop
28-04-2025
- Business
- Scoop
Visa Calls For Ban On Surcharges
Article – RNZ The average merchant card service fee for small businesses is about 1.2 percent to 1.5 percent., Senior Business Reporter Credit card company Visa is calling for a ban on the surcharge fee some merchants charge card-paying consumers at the point of sale. The Commerce Commission was undertaking a review of card charges, and considering cutting the regulated interchange fee card companies can charge banks by as much as 75 percent, for example. Card interchange fees were in turn passed on by banks to merchants at whatever rate the merchant can negotiate, meaning that some pay much more than others. Visa country manager Anthony Watson said the focus should not be on its interchange fees, which were basically the same rate as those charged in the rest of the world. He said interchange fees helped fund payment system innovations and should be treated by merchants as any other cost of doing business. 'What the commission is proposing is to reduce that fee down to a level that would compromise or risk where those investments can be made,' Watson said. 'On certain types of credit transactions, 80 basis points is the interchange fee, and the proposed reduction brings that down to a very low level of 20 basis points which you can imagine on a $20 transaction is very low.' The commission was aware some merchants were price gouging consumers at the point of sale, and warned the practice was unacceptable, though difficult for consumers to detect. 'Different businesses pay different fees and the Visa and Mastercard fees are themselves quite complex and variable. Simplifying these fees is also part of our focus,' commission chair John Small said earlier this year when the regulator invited submissions on the topic from the industry and other interested parties. 'We've been clear businesses should not be surcharging their customers more than the cost to them of accepting that payment.' New Zealand's EFTPOS code of practice meant that debit cards inserted or swiped at the point of sale did not attract a transaction fee, which was one of the reasons why some merchants applied surcharges for other types of card payments, such as credit cards, paywave and other contactless payment methods. The commission estimated the average merchant card service fee for small businesses was about 1.2 percent to 1.5 percent, with some paying more than others.
Scoop
28-04-2025
- Business
- Scoop
Visa Calls For Ban On Surcharges
Credit card company Visa is calling for a ban on the surcharge fee some merchants charge card-paying consumers at the point of sale. The Commerce Commission was undertaking a review of card charges, and considering cutting the regulated interchange fee card companies can charge banks by as much as 75 percent, for example. Card interchange fees were in turn passed on by banks to merchants at whatever rate the merchant can negotiate, meaning that some pay much more than others. Visa country manager Anthony Watson said the focus should not be on its interchange fees, which were basically the same rate as those charged in the rest of the world. He said interchange fees helped fund payment system innovations and should be treated by merchants as any other cost of doing business. "What the commission is proposing is to reduce that fee down to a level that would compromise or risk where those investments can be made," Watson said. "On certain types of credit transactions, 80 basis points is the interchange fee, and the proposed reduction brings that down to a very low level of 20 basis points which you can imagine on a $20 transaction is very low." The commission was aware some merchants were price gouging consumers at the point of sale, and warned the practice was unacceptable, though difficult for consumers to detect. "Different businesses pay different fees and the Visa and Mastercard fees are themselves quite complex and variable. Simplifying these fees is also part of our focus," commission chair John Small said earlier this year when the regulator invited submissions on the topic from the industry and other interested parties. "We've been clear businesses should not be surcharging their customers more than the cost to them of accepting that payment." New Zealand's EFTPOS code of practice meant that debit cards inserted or swiped at the point of sale did not attract a transaction fee, which was one of the reasons why some merchants applied surcharges for other types of card payments, such as credit cards, paywave and other contactless payment methods. The commission estimated the average merchant card service fee for small businesses was about 1.2 percent to 1.5 percent, with some paying more than others.
