Summary: Fraud harms not only your credit union but also your members. This is why it is important to remain aware of the different threats fraudsters pose to your credit union. Learn about synthetic fraud, what it is and how to prevent it.
As technology advances, criminals are becoming more complex with the tactics they use to steal people’s personal and financial information. A study from Javelin Strategy & Research found that in 2017 16.7 million people fell victim to identity theft and the amount stolen was $16.8 billion.
Synthetic fraud is a type of identity theft that is becoming increasingly popular over the last few years. This type of fraud occurs when a thief uses a combination of real and fictitious information to create a new identity. With this new identity, they obtain credit, open accounts and even get a driver’s license or passport.
Typically with synthetic fraud, the criminals obtain a person’s social security number. After they have a valid social security number, they will fabricate the other information to create accounts and begin making fraudulent purchases. The social security numbers of children are especially desirable to these criminals because the chances of being discovered are much lower than that of an adult due to factors like credit cards and loans.
In 2016, synthetic identity fraud accounted for $6 billion in losses. Unfortunately, credit unions and their members are not immune from this type of theft. In order to protect your members and yourself, it is essential to invest in Risk Management and Fraud Detection Services.
Member Access Pacific (MAP) offers a suite of fraud detection and management services designed to help your credit union reduce losses and even lower administrative costs. Some components of our risk management services include:
• Falcon Fraud Manager: This tool is able to detect fraudulent credit and debit card transactions in just 40-60 milliseconds.
• Managed Real-Time Decisioning: Reduces fraud losses through real-time decline rules that are customizable to your credit union’s specific needs. These services also include a full-service call center your members can reach out to at any time with concerns about their cards.
• Risk Services Manager: This web-based application allows you to strategize and set rules to protect your credit union’s card portfolio. The Risk Services Manager can be updated 24/7 and will enable you to respond and adapt to the changing landscape of credit cards immediately.
While it is crucial to have the technology in place to protect your card portfolio, education is another important factor to prevent fraud. Ensure your members are taking advantage of their free annual credit reports and know to notify you of any suspicious activity. By providing this valuable knowledge along with a substantial investment in security technology you will strengthen the trust your members have in you.
Contact MAP today to learn more about risk management and fraud detection solutions.