Press
TMG Fraud Strategies Saved Financial Institution Clients $12 Million
DES MOINES, IA (April 18, 2013) – Fraud detection and prevention strategies executed by The Members Group (TMG) saved financial institutions more than $12 million in potential fraud losses in 2012, the payments processor said today in a webinar.
After investing in a custom set of fraud solutions, each TMG client realized a significant return on investment last year, explained the webinar’s host, Karen Postma. “When fraud was confirmed, the TMG Fraud Detection team put a stop to the suspicious transactions, saving our clients not only financial – but reputational – damage.”
Postma, TMG director of client services, said it was important to note that the ROI calculations TMG used to arrive at average savings were conservative, based only on the minimal amount saved. “It’s difficult to predict the exact amount of fraud that may have occurred if TMG products and services had not been in place,” said Postma.
TMG’s suite of fraud products and services includes several recently introduced technologies, such as 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. Postma notes this type of strategy will become increasingly important as the country migrates to EMV and fraudsters shift away from counterfeiting in favor of account takeovers.
“In account-takeover cases, a fraudster poses as a legitimate applicant to gain access to credit,” explained Postma. “Often he will behave himself for many months to earn an increased credit line. Then, without warning, the fraudster will rack up huge balances and suddenly default.”
A recording of the fraud webinar, “The Fight Against Card Fraud – ROI Knockout,” has been archived at tiny.cc/tmgfraudwebinar. The hour-long presentation is designed to help card teams and other financial institution leaders understand which fraud prevention and detection strategies provide the greatest return on fraud investment.
About TMG
The Members Group (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.themembersgroup.com.