CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » SPONSORED BY NICE Actimize
Sponsored Content
Sponsored Content
Description+goes+here

The first line of fraud defense

Credit unions can prove to members that their apps are the safest way to make payments.

September 27, 2021
NICE Actimize Xceed Fraud & AML Team
No Comments
Sponsored_NICE_119932

 

 

Content Sponsored By:

NICE Actimize

Today, you would be hard-pressed to find an average consumer who doesn’t conduct banking through digital channels. Mobile banking is quickly becoming the preferred method due to ease and convenience.

With the ease of mobile banking and the integration of payment channels such as Zelle, Same Day ACH, and even debit cards, payments are as close to real time as they’ve ever been. However, this new ease and convenience of operating payment channels has also made it easier for fraudsters to scam their way into illegal funds and receive these funds faster than ever before.

With members being the weakest links in terms of fraud risk, preventing and minimizing risk should be the most important priority for all parties involved.

Who’s responsible for protecting members from fraud?

According to a recent study by Javelin Strategy & Research, the top payment providers tend to resolve fraud concerns at a higher rate than financial institutions. When scammed, consumers tend to turn to these corporations first instead of their financial institutions—not because of the ability to “make the customer whole again” but because the public inclination is to resolve issues through the platform where they occur.

Even if the fraud occurred within a digital wallet outside of an credit union’s umbrella, the credit union misses an opportunity to place itself back at the center of digital banking trust on the payments side.

With mobile banking apps, credit unions can finally insert themselves back into the conversation and prove to members that operating within their apps is the safest and most secure way to make payments. Through frictionless banking, credit unions allow consumers to authenticate payments to the point at which they feel completely secure, even during risky transactions where there are a lot of funds being moved.

Additionally, when members use mobile banking apps, credit union fraud teams have more experience and knowledge about resolving scams.

For example, if a fraud tactic is flagged on a mobile banking app, a fraud team will be able to identify similar patterns to prevent future members from being victimized by the same tactic.

Third-party vendors in the same situation don’t have that equal level of experience to lean on for preventing future attacks. On top of that, vendors like Zelle are unable to dispute or reverse transactions. Once they are processed, the results are final.

Digital payments are adopted at an accelerating rate across all industries. Now that the average member is used to the ease and convenience of digital payments, they won’t revert to “traditional” methods anytime soon. Fraudsters are already discovering new methods to scam vulnerable members via digital payment channels. It’s up to credit unions to provide resolution and prevent and minimize fraud risk at every stage. 

Learn more about protecting your customers from mobile payment fraud.

KEYWORDS fraud mobile banking

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Spring 2022

Spring 2022

Credit Union Magazine’s Spring 2022 edition profiles four Credit Union Heroes and examines CUNA's advocacy priorities, the advocacy army, and financial well-being for all.
Digital Edition •  Subscribe

Trending

  • FOM modernization bill passes House Financial Services Committee

  • House committee to mark up field of membership modernization bill

  • Final flood Q&As reflect CUNA-sought clarifications

Tweets by CUNA_News

Polls

Are you ready for CECL?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us