03-07-2025
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.
