Protecting personal identifiable information, financial data, and funds needs to be a top credit union priority these days. Using fraud detection analytics and employee/member education helps organizations stay proactive on security.
Cybercrime organizations continue to develop fraud, malware and social engineering techniques to target financial institutions, customers and websites, often with the objective of snatching credentials to take over user accounts.
According to IBM’s X-Force Research, financial services is one of the top three targeted industries for cybercrime, accounted for nearly 20 million records breached in 2015.
Frauds committed against consumers can also affect financial institutions as well. More than 12% of members responding to the San Diego-based Identity Theft Resource Center’s “Identity Theft: The Aftermath 2016” survey said they switched credit unions following unauthorized activity on an existing account.
Early detection of account fraud, which is not solely cyber-based, is more important than ever as criminals persistently target deposit accounts.
The $4.5 billion Burbank, Calif.-based Logix Federal Credit Union sought to protect its assets wherever thefts takes place. “We just have a need for more tools to detect fraud. Either our members are doing bad things or people are doing bad things to our members,” Matthew Overin, manager, fraud risk management, said.
Logix FCU uses St. John, Newfoundland, Canada-based Verafin’s account fraud-detection analytics and anti-money laundering protection. Within weeks of implementation, the credit union saw a difference. Verafin utilizes data trends gathered from more than 1,400 institutions within their cloud defense. These solutions apply advanced analytics to alert of unusual activity in real-time.
Educating members is another way to try to keep member information safe. Overin said, “We do seminars, newsletters with specifics on different fraud scams and schemes, and do the education that way.” They also educate their frontline so they can inform members of active scams and frauds taking place.
“As payment solutions become more convenient for members, opportunities for fraud also become more convenient for the perpetrators,” Samantha Paxson, chief marketing officer, for Rancho Cucamonga, Calif.-based CO-OP Financial Services.
Paxson noted CO-OP’s major focus is working closely with credit unions to activate important controls that thwart and reduce fraud, while helping members understand the landscape and recognize scam signs.
John Peterson, vice president/general manager, at Clifton, N.J.-based cybersecurity firm Comodo, offered tips to help credit unions and members: practice good password hygiene, educate employees on cybersecurity, and engage endpoint security.
Read the full story about account fraud protection and education credit unions members in the Nov. 16, 2016 print issue of CU Times.
