Compared to the previous Friday (Nov. 21), the company blocked 63% more suspected fraud in the U.K. and 40% more across Europe, it said in a Thursday (Dec. 4) press release emailed to PYMNTS.
“Black Friday still remains a prime time for retailers — and especially for online shopping,” David Capezza, interim chief risk officer, Visa Europe, said in the release. “However, where there is money to be spent, fraudsters will always try to take advantage — which is why Visa’s network never takes a day off.”
PYMNTS reported Friday (Nov. 28) that holiday spending trends raise the risk of fraud because the combination of higher digital spending and heightened price sensitivity is ideal for scammers.
It was reported in September that online fraud losses in the European Union are approaching $5 billion per year, with the rise of artificial intelligence making it harder to spot scams.
In the United States, 3 in 10 consumers or members of their households have lost money in a scam in the last five years, according to the PYMNTS Intelligence and Featurespace collaboration “The Impact of Financial Scams on Consumers’ Finances and Banking Habits.”
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Visa identified five types of scams that are common during the holiday season, according to its Holiday Threats Report released Friday.
These include fake shopping sites that pose as well-known stores and steal shoppers’ card information, package delivery scams that send fake “delivery problem” texts to steal recipients’ information, “extra holiday cash” job scams that make fake job offers, travel fraud that uses fake travel sites and phishing emails to target travelers, and holiday charity scams that seek donations to phony charities, according to the report.
Over the past five years, Visa has invested $12 billion in technology and infrastructure, including cybersecurity and fraud prevention, per the press release.
About a year ago, the company launched its Visa Scam Disruption practice. Since that time, the team has identified over $260 million in fraud attempts in Europe and over $1 billion worldwide, according to an Oct. 7 blog post. It has also worked with clients and law enforcement to dismantle more than 25,000 scam merchants.
Visa also strengthened its Visa Integrity Risk Program, which helps the company’s bank clients detect deceptive merchant practices, per the post.
“Visa will continue to make investments in technology, our bench of experts and our global network that allow us to identify scams early — regardless of where they originate, or who they are targeting — and work closely with our partners and clients to take swift action to stop them,” Capezza wrote in the post.
