Visa has unveiled a bold three-year Security Roadmap for New Zealand to counter the sharp rise in AI-driven scams and digital payment fraud, which have surged alongside the increasing use of artificial intelligence by criminals.
In 2024, scam and card fraud losses in New Zealand reached NZ$194m, with small and medium-sized businesses (SMBs) facing growing threats. Unauthorised card fraud spiked by 32% over the past year, while online shopping scams overtook identity theft as the most reported scam type. Despite the alarming rise, 68% of New Zealanders did not report scam incidents, often due to confusion over reporting processes.
Visa Country Manager for New Zealand and the Pacific Islands Anthony Watson said, “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.”
Criminals are increasingly using AI to mimic legitimate consumer behaviours, bypass security checks such as SMS passcodes, and conduct social engineering scams with alarming precision. Tactics including phishing, ransomware, billing scams and card-not-present fraud are now commonplace, putting SMBs at particular risk.
Visa’s roadmap outlines investment priorities for banks and financial institutions, focusing on modernising authentication, adopting risk-based approaches, and strengthening resilience against AI-driven scams. It also highlights the need for advanced security protocols and ecosystem-wide collaboration to protect consumers and businesses in an increasingly digital economy.
To support SMBs, Visa has launched the SMB Fraud Prevention Toolkit, providing actionable guidance to help businesses protect themselves and their customers. The toolkit includes checklists, employee training resources, case studies, and response plans, addressing threats such as phishing, ransomware and enumeration attacks. 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.”
Visa’s roadmap also emphasises the importance of sustainable funding mechanisms, such as interchange, to support fraud prevention infrastructure, including AI systems, biometric authentication and 24/7 monitoring. Watson said, “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 with banks, merchants, acquirers and government agencies to implement its roadmap and protect New Zealanders as digital payments and AI-driven scams evolve.
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