There’s no question that fighting fraud has become a top priority for credit unions. The problem is that most fraud mitigation tools and strategies are simply not evolving at the pace of fraudsters. Consider how EMV chip-enabled cards and tokenized payments have simultaneously helped secure card payments while also encouraging fraudsters to shift towards “card-not-present” fraud tactics and skimming at the ATM. Fraud is also becoming harder to detect, leading to more “false positives” which weaken member trust. Creditcards.com, reports that nearly 4 in 10 consumers have received alerts from financial providers that “falsely flagged legitimate purchases.”
Today, we are excited to bring to the credit union movement a new tool in the fight against fraud. COOPER Fraud Analyzer is now a part of the CO-OP Shared Branch network, with all network transactions flowing through the interface of this account-based risk management solution.
Data-Informed Fraud Detection
With members engaging on so many different channels, identifying fraud or suspicious transactions is becoming almost impossible. COOPER Fraud Analyzer uses rules, decisioning and reporting to create a more holistic view of each member, enabling credit unions to better detect suspicious transactions. The platform sends out an alert flagging a suspicious transaction, allowing the issuer credit union to review the activity and verify with the member. With each case, the details of the transaction get fed back into the database so COOPER can “learn” from the experience, adding another layer of intelligence to the system – evolving as fast as the fraudulent activity it combats.
“COOPER Fraud Analyzer is an important first step in the development of our COOPER technology, a comprehensive, data-driven machine learning platform that understands the complex patterns of fraud and can help credit unions exceed the pace of fraudsters,” said Todd Clark, President/CEO of CO-OP. “CO-OP is building the best possible solution to give credit unions the means to compete with big banks. Our goal is to continually invest in COOPER to generate additional use cases and optimize machine learning to provide a seamless and secure experience for credit unions and their members.”
COOPER Fraud Analyzer monitors all account-based transactions within the CO-OP Shared Branch network, comprised of more than 1,800 participating credit unions and 5,700 locations nationwide, including teller, CO-OP Mobile, Sprig by CO-OP, Shared Branch Express Kiosk/ATM, CO-OP Contact Center and remote deposit capture.
The Next Frontier of Member Engagement
CO-OP is also developing COOPER Fraud Score for account- and card-based CO-OP products, using machine learning to create a risk-scoring model to determine the level of suspicion for a transaction. The company further intends to leverage COOPER for predicting patterns for greater member engagement and targeting to anticipate member needs.
“We are very excited for what COOPER can become as more CUs get on board,” says Justin Davis, Fraud & BSA Manager for Digital FCU. “AI solutions are only as successful as the data they can access. As the network grows, so will the alert performance.”
Ready to bring the awesome power of data-driven fraud mitigation to your credit union? Contact us to learn more about COOPER Fraud Analyzer and other CO-OP fraud mitigation solutions designed to protect and better serve your members.