Visa (NYSE:V), the enabler of digital payments, is fighting back as scammers harness the power of artificial intelligence to target New Zealanders by using AI to combat AI.
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, scam and card fraud losses “reached NZ$194 million, 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.”
Despite this, 68% of New Zealanders chose “not to report scam incidents[4], citing uncertainty around reporting channels.”
Anthony Watson, Visa Country Manager for New Zealand and the Pacific Islands
“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. 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 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.”
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, the toolkit offers clear checklists, real-world case studies, employee training tips, and incident response plans.”
Watson said:
“SMBs are the engine of New Zealand’s economy and, increasingly, cyber criminals exploit the most vulnerable point in the payments’ ecosystem: humans. 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.”
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.”
Watson added:
“Fraud prevention doesn’t just happen – it’s powered by sustained investment in technology. 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.”
