The importance of fraud text alerts for credit unions and their members

When it comes to fraud prevention, much focus is placed on the importance of rule strategies, as well as identifying and blocking fraud trends before they impact your credit union. Fraud fighters rely on the combination of risk scores and data elements to separate fraudulent activity from legitimate member spend. No matter how carefully cultivated a fraud rule may be, there will always be impact to legitimate member transactions. False positives are an important consideration for fighting fraud, in order to balance fraud savings with the member experience.

However, while rule strategies and analysis are undeniably important to protecting your credit union, they are only part of the puzzle. Even the best rule set strategy still requires member intervention to determine whether a transaction was ultimately legitimate or fraudulent. This is when your member becomes acutely aware of your credit union’s fraud defenses – therefore, it is important to manage that confirmation process precisely and ensure that your member has a positive experience.

How Can Credit Unions Provide a Positive Fraud Management Experience?
It may be hard to imagine your members having a positive experience when it comes to fraud. Many of your fraud cases will turn out to be legitimate transactions. However, even with a conservative false positive ratio of 4 to 1, that is still four members impacted by a fraud alert for every fraudulent case identified – not to mention the feelings of stress and helplessness a member can experience if fraud has been identified.

 

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