Fraud protection is the most important factor when consumers select a payment card, surpassing customer service, rewards, interest rates, and other factors, according to Javelin Strategy & Research.
But few financial institutions provide clear and comprehensive information about how consumers can guard against fraud, says Jim Van Dyke, senior vice president of innovation for Sontiq Corp.
“It shouldn’t be a mystery for members about how to protect themselves,” says Van Dyke, who reports that scam attempts have grown 3,000% during the pandemic. “Many communications about breaches are confusing. The education we’re giving consumers is garbage, so it goes in the garbage.”
The way forward is to “deputize” members in the fight against fraud by educating and engaging them against misuse of their own data, he says. This, in turn, will protect your credit union.
Van Dyke advises credit unions to:
Provide features that make members feel secure, including guaranteed reimbursement for fraudulent transactions, real-time alerts for sensitive transactions, and information about how to avoid fraud.
“Position this as a partnership,” Van Dyke says. “Advise members to join you. People are excited about these capabilities.”
“There’s no way forward but to work with members,” Van Dyke says.