AXP · News · 20260825N

AI Fraud Detection Advantage

AMERICAN EXPRESS CO · 2026-08-25 · Importance 26 · Surprise 24

American Express reportedly has the lowest fraud rate among major U.S. card networks. Its closed-loop network gives the company access to both cardholder and merchant data, unlike Visa and Mastercard's model involving numerous third-party issuers and acquirers. American Express combines this data advantage with AI and machine-learning investments to detect anomalies, prevent fraud, streamline investigations, and identify emerging fraud patterns.

Key facts

• American Express's closed network structure allows it to access both cardholder and merchant data, providing an advantage in detecting anomalies and preventing fraud. source
• American Express invests in AI and machine learning to enhance its fraud detection capabilities, streamlining investigations and identifying emerging fraud trends. source