According to a recent Visa survey, 83% of German consumers think there has been a rise in online fraud attempts in the last year, and 91% of them have been the target of such attempts. More than 1,000 people took part in the May 2024 poll, which was carried out by the market research agency forsa and brought to light growing fears about fraud enabled by artificial intelligence (AI). While 77% of respondents think that biometric techniques like fingerprint and facial recognition can improve payment security, a huge 94% of respondents are concerned that AI could make fraud tougher to detect in the future.
According to the survey, popular fraud techniques like shock messaging, phishing, and grandparent scams are common. Sixty-four percent reported having come across phishing emails that purported to be from banks, and eighty percent said they had received fake communications from delivery firms. Fictitious text messages purporting to be from family members have been received by 42% of respondents, and 14% had also received such calls. Sixty-four percent of respondents said they had heard of "love scamming," in which con artists create fictitious accounts on dating apps or social media in order to cultivate connections for money.
There is a general concern about the potential applications of artificial intelligence (AI) in fraud, even if the majority of consumers (59%) are confident in their abilities to spot bogus websites or emails. According to the report, 94% of participants are afraid AI will make it more difficult to spot fraudulent activity. Deepfakes are artificial intelligence-generated or changed media content. Of those over 35, 27% had knowingly come across them. Furthermore, according to 29% of respondents, artificial intelligence is utilized in the banking sector to thwart fraud. By itself, Visa's AI-powered fraud detection tools saved the world's economy almost $40 billion in damages by 2023.
Tobias Czekalla, chief of Visa Germany, emphasizes the dual role of AI, pointing out that although it is a tool for fraudsters, it is also essential for preventing fraud. He highlights that Visa employs more than 100 distinct AI models to safeguard payments, which has helped to lower the fraud rate on Visa transactions to an all-time low.
The report shows that trust in digital payments is trending in the right direction. Contactless card payments are now regarded as secure by 79% of respondents, up from 75% the year before. There has been a notable surge in trust towards mobile payments, rising from 37% to 49%, while confidence towards using debit cards for online payments has gone from 49% to 58%.
There are differing views in the survey about the potential effects of AI. Of those surveyed, 38% saw opportunities in AI, while 54% were more worried about the threats. AI poses a greater threat to older generations than to younger ones; 65% of people over 60 are concerned, compared to 45% of people under 35.
The Visa survey highlights the growing worries German customers have about online fraud, with a significant rise in attempts reported in the previous 12 months. Although conventional fraud techniques are still widely used, identifying fraudulent activity is more difficult due to the possibility of artificial intelligence being abused. However, there is still promise for improved security thanks to developments in biometric security and AI-driven fraud prevention. In order to preserve consumer confidence and security as digital payments continue to expand, it will be essential to strike a balance between the risks and potential given by AI.