ST. PETERSBURG, Fla.—There’s hardly an issue facing credit unions that’s bigger than fraud, asserts PSCU, which adds that card not present fraud (CNP) and the growing number of “false positives” are two major concerns.
“You can’t pay enough attention to fraud now,” said PSCU President Chuck Fagan, turning to the rapid growth in CNP fraud as EMV takes hold in the U.S. “EMV definitely has had a positive effect on in-person transaction fraud. But criminals are still having a good year, and we always have to look for ways to stay ahead of them. They have shifted a lot of their attention to CNP fraud.”
It isn’t just EMV that has pushed crooks to engage in more card not present fraud; the rapid rise in online sales is another reason for what many experts have stated is an unexpectedly fast pace of such fraud in the U.S.
Tougher Rules
Fagan agreed that as issuers tighten down security, they must address how tougher fraud detection rules can also lead to more instances of legitimate transactions being declined—a false positive.
“This goes back to the member experience,” said Fagan, who added that PSCU is successfully addressing this issue. “We balance protecting credit unions’ assets with making sure their members’ cards can be used whenever and wherever.”
Fagan added that card controls, tools PSCU offers that allow members to set spending parameters and turn plastic on and off, are helping in the fraud fight.
“These tools get members involved in the fight against fraud, which is critical,” added Fagan. “Card controls are very valuable if members adopt them. Focus group research ind
Chuck Fagan
icates people are willing to use them.”
Turning to other business, Fagan said PSCU is focused on the credit union member experience. He said the company is building tools that keep CU staff working inside the core system for as many applications as possible.
“For example, when the credit union employee logs into the core system, we don’t want the credit card application to look so disjointed from other loan products. The more we can allow data to be pulled into the core system and staff work from data residing in the core, the better the member experience will be,” said Fagan, who added that PSCU is working closely with its member CUs to assess their changing needs. “The employee, then, doesn’t have to tell a member to wait while they look in the credit card system, and then go back to the core.”
Member Experience Center
Fagan also noted that PSCU has opened its new Member Experience Center here, which has been purposefully designed for cross-disciplinary collaboration and innovation.
As CUToday.info reported here http://cutoday.ssd.thinkcreativeinternal.net/Fresh-Today/PSCU-Opens-Member-Experience-Center, the Center includes an array of interactive kiosks designed to illustrate how PSCU works together with credit unions to achieve collective success. It also includes meeting space.
“The Member Experience Center offers PSCU and credit unions a chance to walk in the footsteps of the member,” said Fagan.