DES MOINES, Iowa—TMG (The Members Group) is reporting that fraud detection and prevention strategies it executed in 2014 saved its financial institution clients $28 million in potential fraud losses.
That represents a nearly 40% year-over-year increase from the $20 million TMG saved its clients in 2013, the company said.
“Speed and behavior-based fraud detection are critical differentiators for TMG’s prevention program, which more credit unions and community banks than ever before in the company’s history are relying on for protection,” said TMG’s Karen Postma, AVP of fraud operations and asset management. “The most innovative technologies combined with skilled, experienced fraud analysts allow our fraud team to safely authorize more transactions, which ultimately leads to a better cardholder experience and more revenue for our partners.”
TMG said evidence of its team’s effectiveness came with a recent announcement from Visa, which recognized San Diego County Credit Union as one of six Service Quality Performance Award winners based on the issuer’s measurable e-commerce fraud prevention strategy. Visa noted SDCCU’s strategy resulted in a high authorization approval rate and a low fraud-to-sales ratio. The brand called SDCCU highly efficient in its processing of e-commerce exception items, a service TMG is proud to provide the $6.9-billion credit union.
According to Postma, it is important to note the calculations TMG used to arrive at the $28-million total savings were conservative, based only on the minimal amount saved.
TMG’s suite of fraud products and services includes several technologies used in concert with human analysis. Examples of technologies include Fraud Text Alerts and Adaptive Control, a fraud-detection solution that monitors cardholder behavior over time, assigning custom, real-time strategies on an individual, cardholder level. In October of 2014, TMG’s MasterCard-issuing clients were given access to MasterCard Expert Monitoring, which provides fraud scores in real-time as credit and debit cards are swiped.