Visa launches Advanced Identity Score to fight application fraud
By Sunniva Kolostyak
Visa has unveiled Advanced Identity Score, a digital tool to help financial institutions in the US fight new account fraud by creating a two-digit identity fraud score.
The brand-agnostic solution utilises artificial intelligence and predictive machine learning capabilities and has been launched in response to application and identity-related fraud – estimated at $1 billion a year.
The tool combines the AI with application and identity data to eliminate operational costs due to remediation, as well as decrease the number of new accounts stemming from stolen identities.
The two-digit Fair Credit Reporting Act (FCRA)-compliant score is generated in near real-time, preventing fraud loss at the point of credit or loan application, becoming the first solution to harness virtually all US-approved/declined bank card application data and account-level fraud data.
Speaking to IBS Intelligence, Melissa McSherry, Senior Vice President and Global Head of Data, Security and Identity Products and Solutions at Visa, said the solution is about providing issuers with the confidence to auto-decline and auto-approve applications and eliminate friction.
“You want to make sure you’re able to scale solutions that identify the fraud and then allow good folks to go through without having to stop them every five seconds to validate something or other. And then the other thing is, it’s always about fraud detection and mitigating the myriad of synthetic identity fraud that’s occurring within the system so that at the application stage, we start eliminating that fraud from even coming into the infrastructure at all.”
Visa’s scoring model examines data points in areas including application velocity, fraud and suspicious activity, and bankruptcy data across consumer identity elements. It also incorporates data from government agencies, third-party data providers, law enforcement agencies, and self-reported data from consumers.
“Hopefully what [the consumers] see is less friction or at least the identification of suspicious activity earlier in the process. So if they are a victim of identity fraud, they have the ability now to tap in and say, ‘wait, can I understand why a particular issuer has either declined the application or is continuing to verify information?’,” McSherry continued.
“And if there is some activity that looks suspicious, they have the ability to create a dispute, and provide that information, so that future issuers understand that if they were a victim, what that looks like. So, we want to make sure that we’re providing that outlet for consumers to actually be part of the solution.”
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