TMG fraud prevention strategies save financial institution clients $40 million in 2015
Savings represent a 42-percent increase from 2014 totals
DES MOINES, IA (April 26, 2016) — Fraud detection and prevention strategies executed by payments processor TMG saved its financial institution clients more than $40 million in potential fraud losses in 2015. This represents a greater than 42-percent year-over-year increase from the $28 million TMG saved its clients in 2014. The average return on investment experienced by those clients enrolled in TMG’s fraud prevention program was greater than 500 percent.
While some of the increase in total fraud savings can be attributed to the growth of TMG’s client base and the growth of its clients’ portfolios, TMG Fraud Prevention Manager Ashley McAlpine believes the unprecedented number of merchant compromises was a factor, as well. “A large number of data breaches took the industry by storm in 2015,” said McAlpine, adding the calculations TMG used to arrive at the $40 million total savings were conservative, based only on the minimal amount saved. “More than 750 data breaches in the U.S. alone were identified, compromising the credit and debit accounts of consumers who transacted with popular merchants like Hilton Hotels, Hyatt Hotels, Walgreens’ online photo stores and Wendy’s.”
TMG’s suite of fraud products and services includes industry-leading prevention and detection technologies used in concert with human analysis, which McAlpine argues is key. “Our fraud prevention team develops close relationships with TMG’s financial institution clients so we have a deep understanding of their risk tolerance. That allows us to develop customized strategies designed for the needs of the consumers they serve. Couple that with our experts’ participation in forums with other global financial and payments organizations, and you have a team of people adept at anticipating how a particular fraud trend will impact our clients.”
Examples of fraud detection and prevention technologies TMG offers include Fraud Text Alerts and Adaptive Control, a fraud-detection solution that monitors cardholder behavior over time, assigning custom, real-time strategies on an individual, cardholder level. The payments processor is also launching a series of customizable consumer controls, which will allow credit and debit cardholders to play a more active role in the detection of fraudulent transactions.
About TMG
TMG is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.tmg.global.
