With the advancement of digital technology and influx of places people store their money and information, there have never been more ways for fraudsters to attack. Credit unions must adapt and progress their fraud prevention methods at the same rate in order to keep their members’ accounts safe.
According to Javelin, there was $52 billion in identity fraud losses in the United States in 2021. Furthermore, fraud attempts doubled in recent years, increasing from $317.3 million in 2018 to $638.6 million in 2020 and $637.2 million in 2021, while there was a 58% increase in account takeover attacks in May 2022 alone.
“These are some really powerful numbers,” says Fiserv Vice President of Product Patti Reid, who hosted a session Thursday at the 2022 CUNA Operations & Member Experience Council and CUNA Technology Council Conference in Las Vegas. “There’s a problem.”
There’s no easy way to solve the entire problem, but Reid says credit unions can use member data to combat against fraud. Credit unions naturally have significant information about each of their members. Does a certain member pick up coffee every day on their way to work? Have they changed their PIN number recently? Do they regularly pay for a certain utility on a peer-to-peer payment application?
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