Tips for managing members’ compromised cards

Fraudsters are always looking for a new way to take what is not theirs—cloning debit and credit cards is just one of those ways. In the race to create more convenient tools and services, corresponding security features often lag behind, creating windows of opportunity for bad actors to take advantage. When product and security don’t line up, compromised card situations can happen.

When a member gets a notification that their card has been compromised, it is disheartening for them—there is an immediate feeling of frustration and inconvenience. Have their funds been depleted? How can they access their money? How long will they need to wait to get a new card? Where is their local branch? When will they be able to get there? What about the automatic payments attached to the card? There are a lot of questions that come up and overwhelm them at that moment.

Typically, that is when the member takes charge of the situation. They contact their credit union to see if the card has been closed and discuss their recent activity to determine if any fraudulent transactions have been processed. As a credit union, when your institution has been notified of a compromised card situation, there is a lot to do in a short amount of time.

First, your credit union should advise the member, if possible, to go to an ATM or a branch location and pull out any cash that they may need until they get their new card. Also, you can offer the member an instant card issue (if you have one) or any other services that may help the member to gain access to their funds quickly. The next step will be to address the issue at large and determine the extent of the breach by working with the card vendor and getting a list of cardholders and gathering policy and procedures for this type of situation. Contact your core processor to see how they can assist with the process.


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