An ounce of fraud prevention goes a long way

by Co-op Solutions

Emboldened and sophisticated fraudsters are driving an increase in card fraud losses. Financial institutions are taking more aggressive, costly measures to combat it, but not all strategies are equally effective. However, new approaches that blend cutting-edge technology with the use of human consultants are proving to be more effective at preventing fraud while preserving the member experience for credit unions.

Global card fraud losses have tripled in the past decade and are expected to total $408 billion over the next 10 years. The United States is at the center of the crisis; despite accounting for just 22% of worldwide card transaction volume in 2020, U.S. issuers were hit with nearly 36% of global card fraud losses in 2020.

Making matters worse, over a third of surveyed industry fraud executives say that well-organized criminal rings are committing up to three-quarters of such attacks instead of “lone wolf” fraudsters.

 

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