Credit Unions pride themselves in their ability to take care of their members. From supporting daily transactions to assisting members in securing large home loans, credit unions handle sensitive data constantly. Sometimes, outside forces make it difficult to deliver the best service possible.
One of the biggest threats to credit unions is financial fraud. Despite spending an average of $136,000 annually on security measures, fraud levels have risen by 16% in the last year alone. In an average year, financial institutions spend $226,000 on fraud recovery and clean up. Organizations also spend more than 2,000 employee hours each year dealing with the aftermath.
When I meet with my credit union clients, I hear their concerns about identifying and preventing fraud. It can be overwhelming because fraud tactics are always evolving, and we’re always one step behind them. Additionally, I hear from my clients that it’s not just about preventing fraud loss and saving money – it’s also about protecting members and improving their experience. Members are worried about fraud, and rightly so. Roughly 46% of members think they’ll be a victim of fraud in the next five years, and the average victim loses $4,187 due to social engineering.
The rising fraud levels and increasing costs of fraud recovery can lead credit unions to feel like they aren’t equipped to protect their member’s personal information. Because many different individuals interact with members for different transactions, no one person stands between a fraudster and member information. To improve data protection, credit unions need to take a holistic approach – one their entire team can adopt. They require a system that their call center and loan officers can use to increase account security.
We listened to those concerns from our clients, and that’s why I’m thrilled to now have something to offer credit union facing this challenge. Smart Track was created to help credit unions deliver top notch service while identifying and preventing social engineering fraud. The tool tracks member account activity across all interaction points, thereby allowing the credit union to improve their customer service while also stopping fraud before it even happens by identifying suspicious phone activity in real-time.
This is vital because fraudsters call in to an institution several times to get information that will help them access an account. Because they may talk with a different agent each time, this activity isn’t flagged as suspicious. Smart Track, on the other hand, identifies this and alerts credit union staff so that appropriate action can be taken. For example, when Dominion Credit Union implemented Smart Track, they identified a fraud attempt on the very first day!
Fraudsters attack where credit unions are most vulnerable – their call centers – making your friendly staff your biggest threat to your security. In fact, 71% of credit unions say that their employees are their biggest area of data loss, and phone calls account for 46% of all successful security breaches. To successfully fight fraud, credit unions need to close security gaps across all member interaction points.