Fraud tactics have been changing faster than ever before since the introduction of artificial intelligence (AI). At the same time, our members want banking to be quick and easy, whether they're transferring funds, requesting a loan, or contacting us with an account question.
This poses a unique challenge for credit unions: how can security processes evolve to counter the increase in advanced fraud schemes without delaying valid transactions or causing member frustration?
Meeting members where they are
Fraud tools work best when they’re part of a member’s usual routine and feel personal. Members have shifted to using digital banking first, with many now relying on apps as their primary way to manage their finances. When security is built into these apps, it feels more natural, rather than an additional hurdle or afterthought. Members don’t have to leave the app they trust to get maximum account protection with alerts, transaction monitoring, instant verification, and easy card controls.
Consistent communication is critical, too. We can provide our members with the best technology to prevent fraud, but they also need to know why they’re useful and how to use them to get the most impact. Using messages through all member communication channels, such as digital banking, email, and in-branch interactions, can help reinforce smart behaviors and keep fraud top of mind for members. That’s how they become active partners in protecting their information (and their money).
Staying ahead of fraud changes
New scams pop up every day, and credit unions need to remain continuously on the lookout for emerging and evolving issues. With real-time fraud monitoring, we can spot red flags and alarming behaviors as they occur and stop threats before they become a problem for members.
Credit unions need to use data and speed to adapt quickly to emerging threats. IT, security, and member service teams must work together to act quickly and stop fraud attempts while maintaining the best member experience.
Best practices we’ve found
A good fraud plan should have many layers, starting with understanding members and their needs. Members are credit unions’ first line of defense against fraud, so it’s critical to provide them with consistent reminders and education about common scams and the tools we offer to keep them safe.
Employee training and cross-team communication are also important components, enabling credit unions to identify and respond to new threats promptly. Creating an open line of communication and working closely with members to secure their accounts helps their peace of mind, knowing their information and finances are secure.
Member-facing employees play a major role in this collaboration, since they’re often the first to hear from members about suspicious activity. Having a system where we can have open communication across departments enables faster response, better decisions, and a more seamless experience for members.
Still about the experience
Fraud prevention has become a defining part of the member experience. In a world where threats move faster and expectations are higher than ever, shifting from rigid, reactive controls to adaptive, intelligent security has been a key strategy for us at Ascend.
When protection is personalized, embedded, and responsive, we’ve found that members feel safe and respected. The goal is not to create fear, but to build confidence—helping members recognize red flags while reinforcing that their credit union is there to support them. That’s how we build trust, which is essential to serving our members and the communities we call home.
