Top five fraud prevention tactics for credit unions
One of the largest stressors facing financial institutions today is the inability to accurately predict which of the various types of fraud attacks will be the next one to rear its ugly head: Will it be one of the many data breaches performed with stolen cards or card number? Will it be an illegal account transaction or transfer of funds performed with a consumer’s account number? Or will it be a phishing attack performed by tricking a consumer to give up private information?
With the many different types of fraud today, it is no wonder we are all worried about these attacks! That is why understanding how to best prevent fraudulent acts is critical in mitigating these exposures. While there are numerous ways financial institutions can help reduce the risk fraud, there are certain prevention tactics that are critical to preventing fraudulent attacks, no matter how they are performed.
Fraud Prevention Best Practices:
- Closely monitor accounts to help identify any suspicious or unusual activity. Act immediately on any suspicions!
- Educate consumers about the warning signs of fraud. Consumer awareness and education is an essential form of fraud prevention, and will continue to be as the payment types continue to transform and modernize.
- Employ multiple layers of proven card protection technologies, such as chip technology, tokenization, and biometrics.
- Implement beginning-to-end card data encryption, like tokenization, to protect the card information throughout the transaction process, from initiation to authorization.
- Utilize multiple, secure identification measures, like fingerprint recognition, to properly authenticate account holders when authorizing transactions.
Remaining aware of recommended internal controls and prevention best practices will keep your financial institution better protected from the various fraud types that face our industry, while also assuring your consumers that you are doing all that you can to keep them safe from these growing risks.
Visit www.alliedsolutions.net to find out more about the products and services Allied Solutions offers to help protect financial institutions from fraud risks.
