MADISON, Wis.– CMFG Ventures, the venture capital arm of CUNA Mutual Group, said it has made an investment in DataVisor, a provider of online fraud detection and risk management for financial services and ecommerce.
The company is expanding into the credit union market, according to CMFG Ventures. The size of the investment was not disclosed.
“Credit unions experience various types of fraud involving applications, transactions and account takeovers. In fact, nearly 40% of Americans have been identity theft victims, leading to fraudulent applications at financial institutions. Resulting losses are often disguised as normal credit losses,” CMFG Ventures said. “Nevertheless, fraud costs for financial services and lending institutions are up 10% since 2020. Many legacy fraud solutions are dated, segmented, slow, and cost prohibitive for credit unions to implement.”
Integrated Platform
According to CMFG Ventures, DataVisor provides an integrated, comprehensive fraud platform with real-time prevention and detection that can save credit unions time and money.
“With increased adoption of real-time transactions, the necessity to respond to fraud threats with speed, agility, and better technology is imperative for credit unions to minimize fraud losses and deliver impeccable service to their members,” said Yinglian Xie, CEO of DataVisor. “We want to help credit unions deploy a modern fraud solution that delivers high return on investment and quickly detects and combats sophisticated fraudsters in a more cost-effective way.”
CMFG Ventures said that DataVisor, powered by transformative AI and machine-learning capabilities, enables proactive fraud detection in real time, with a 40-90% increase in detection versus traditional services.
One CU’s Experience
According to the company, NASA FCU launched DataVisor’s platform in 2021.
“We partnered with DataVisor to enrich our fraud-fighting capabilities with a scalable infrastructure,” said Doug Nahas, chief operating officer with NASA FCU. “They have exceeded our expectations and proven to be one of our most innovative partners. DataVisor’s team understands our business needs and are experts at extracting, categorizing, and modeling data. This has allowed us to replace a series of previous vendor fraud solutions with improved models and significant cost savings.”
CMFG Ventures sees the investment in DataVisor as a way to help more credit unions mature their fraud prevention strategies.”
‘Amplified the Need’
Added Mike Kraus, principal at CMFG Ventures, “The shift toward digitization and real-time payments has amplified the need for credit unions to prioritize fraud solutions that are proactive and real-time. This is evidenced by the National Credit Union Administration making fraud prevention and detection one of its supervisory priorities in 2023. We’re thrilled to invest in DataVisor, which offers innovative and leading technology that can help our credit union partners stay ahead of emerging threats.”
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