PSCU, the nation’s premier payments credit union service organization (CUSO), today reported that it stopped more than $277 million in potential fraud for its Owner credit unions and their members in 2019 by blocking fraud at the point of sale, in the contact center and online, among other channels. This represents an increase of $67 million – more than 30% – compared to 2018, as PSCU continues to invest in best-in-class fraud-fighting tools, including machine learning and data analytics capabilities across multiple channels, while continuing to deliver a seamless member experience with a 99.6% transaction approval rate.
“As fraud becomes more frequent and advanced, PSCU is committed to developing and investing in leading technologies to prevent, fight and mitigate fraud loss for our Owner credit unions,” said Jack Lynch, SVP, chief risk officer at PSCU and president of CU Recovery. “Through our proprietary tools and expertise, we are able to better protect our Owner credit unions and their members to stop fraud at every point of attack, while also minimizing financial and reputational risk associated with fraudulent activity. At the same time, we remain committed to preserving the member experience and ensuring successful transactions at the point of sale.”
PSCU employs a multi-layered approach to combat fraud, utilizing a number of technologies and best practices. This includes PSCU’s Linked Analysis, which helped the CUSO secure more than $38.7 million in fraud mitigation in 2019 by preventing fraud before it happens. Developed by PSCU’s in-house fraud experts, this tool uses cross-network analytics to create a 360-degree view of a member, enabling PSCU to link events through artificial intelligence (AI) across different platforms, individuals across different institutions, merchants across any card and all of these points to each other. Using these connections, data scientists at PSCU then utilize research and machine learning to proactively take action.
In 2017, PSCU became the first credit union service provider to begin utilizing Pindrop to fight contact center authentication fraud. In 2019, the CUSO secured over $22 million in savings through this unique platform. With the help of Pindrop, PSCU is able to proactively block attempted contact center fraud and move quickly to protect the available credit of those accounts from potential fraud loss.
In addition to these solutions, PSCU offers Enhanced Fraud Services that provide additional fraud-fighting capabilities. This includes an assigned fraud consultant, which enables a more customized approach for a seamless member experience that fits a credit union's vision. Ongoing dark web monitoring, dedicated portfolio observation and an understanding of the credit union’s risk tolerance fosters faster and more effective fraud detection by the CUSO.
“Fraudsters are becoming increasingly sophisticated – no single defense can withstand the constant barrage from probing criminals,” added Lynch. “That is why PSCU’s multi-layered approach, utilizing the most innovative technologies and processes available, has made us an industry leader in providing anti-fraud solutions to our Owner credit unions, protecting them against losses from fraud, lost/stolen accounts and disputed transactions, among other threats.”