DES MOINES, Iowa (5/1/15)--Credit unions and other financial institutions relying on fraud detection and prevention strategies from The Members Group (TMG) in 2014 saved roughly $28 million in fraud losses, according to the payments processor.
That marks a 40% jump from the $20 million saved the prior year.
"Speed and behavior-based fraud detection are critical differentiators for TMG's prevention program," said Karen Postma, TMG assistant vice president of fraud operations/asset management. "The most innovative technologies combined with skilled, experienced fraud analysts allow our fraud team to safely authorize more transactions, which ultimately leads to a better cardholder experience and more revenue for our partners."
TMG offers a variety of products that work side-by-side with human analysis. Products include fraud text alerts and adaptive control, a program that monitors a cardholder's behavior over time, and then assigns custom, real-time strategies specific to that cardholder.
Postma said that the calculations TMG used to come up with the $28 million number were conservative and based only on minimum amounts saved.
TMG's fraud detection services also were recently indirectly recognized by Visa, which named San Diego County CU one of six Service Quality Performance Award winners for its e-commerce fraud prevention strategy, which includes employing the services of TMG.
Visa noted that the credit union's strategy led to a high authorization approval rate and a low fraud-to-sales ratio, and that it was highly efficient in processing e-commerce exception items.