Fraudsters stole more than $16.8 billion from 16.7 million U.S. consumers in 2017, according to Javelin Strategy & Research. With payments shifting to online and mobile channels as well as P2P, wearables and other smart devices, fraudsters have more pathways to infiltrate a consumer’s account and are quickly exploiting any security gaps. For example, card fraud for online purchases alone rose by 15% in 2017.
Even with the most sophisticated fraud mitigation tools, credit unions can only do so much to pinpoint fraud. Only members themselves know exactly how their cards are being used, which is why their participation in fraud detection and prevention is so critically important, especially during the upcoming holidays when fraudulent activity dramatically ramps up.
Delivering Security Through Self-Service
The best defense against fraud is an engaged member. But with members traveling to so many different places and using their cards for so many purchases, convenience is just as important as providing security. Members don’t want to spend a lot of time right before each trip updating their card preferences, travel notifications and informing their banking provider about their plans. They want the convenience of self-service on their terms.
“Today’s economy is self-service driven, and consumers want to be able to manage every aspect of their financial life – especially their cards – through any channel at any time,” emphasizes Jennifer Minnis, Fraud Product Manager for CO-OP.
Members today rely on their smartphone for almost everything, and this is why it is so important for credit unions to provide mobile security options for members, she said.
Managing Card Activity Anytime and From Anywhere
Members that leverage self-service tools, which allow them to control their card activity, are more likely mitigate potential fraud or account disruptions due to suspected fraud. As an added benefit, they’re also more engaged and likely to stay within their travel budget by being able to track spending.
Card controls and alerts are adding value in a number of ways including reducing fraud costs by 40 percent, lowering service costs by 26 percent and increasing usage by 23 percent, while reducing false declines by 16 percent, according to industry research.
CardNav by CO-OP, a mobile app for card controls and alerts, is one such tool which enables members to specify exactly when, where and how their cards can be used, down to the merchant type, geographic location, channel, dollar amount, time of day – and proximity to their smartphone. Using CardNav, members can choose to categorically block transactions initiated outside the parameters they have set – or receive alerts from the app, with the option to authorize or deny suspicious transactions on demand.
The latest version of CardNav includes features that enable members to quickly and conveniently update location-based settings and help their credit union reduce fraud instances. The International Travel Events setting allows members to submit international travel plans in advance from within the app. Additionally, members can update their country of residence using Travel Controls. This can be particularly helpful to members serving in the military whom travel to different locations for months at a time.
Fraud Alerts for Members on the Go
Another effective way to fight fraud through mobile is through alerts. Using CO-OP’s fraud text and e-mail alerts (available as an add-on feature for credit unions), members can validate potential fraud on their accounts from the convenience of their phone in real-time.
Members of participating credit unions can receive these texts and/or e-mail notifications for any suspicious fraudulent activity on their credit or debit cards. They can then take immediate action to block the card from being used further if fraud is indeed occurring.
“Fraud text and email alerts enable faster responses from card holders when an instance of fraud is detected,” said Minnis. “Ultimately it provides a more seamless and convenient experience for the travelling member and helps drive engagement.”
The Right Solutions for Today’s Member
With the holidays fast approaching, the right time to engage your members on fraud prevention is now. Turning your members into active participants in their account safety is the best way to maintain member trust and drive a positive experience.
Contact us to learn more about CardNav, fraud alerts and other solutions designed to help mitigate fraud at your credit union.