ST. PETERSBURG, Fla.—PSCU is reporting it stopped more than $277 million in potential fraud for its credit unions and their members in 2019 by blocking fraud at the point of sale, in the contact center and online, among other channels.
The CUSO said the figure represents an increase of $67 million – more than 30% – compared to 2018, with the company saying the payoff is the result of its investment in best-in-class fraud-fighting tools, including machine learning and data analytics capabilities across multiple channels.
The CUSO added the thwarted fraud occurred at the same time it was able to deliver a “seamless member experience” with a 99.6% transaction approval rate.
“As fraud becomes more frequent and advanced, PSCU is committed to developing and investing in leading technologies to prevent, fight and mitigate fraud loss for our owner credit unions,” said Jack Lynch, SVP, chief risk officer at PSCU and president of CU Recovery. “Through our proprietary tools and expertise, we are able to better protect our owner credit unions and their members to stop fraud at every point of attack, while also minimizing financial and reputational risk associated with fraudulent activity. At the same time, we remain committed to preserving the member experience and ensuring successful transactions at the point of sale.”
Multi-Layered Approach
According to PSCU, it employs a multi-layered approach to combat fraud, including Linked Analysis, which it said helped secure more than $38.7 million in fraud mitigation in 2019 by preventing fraud before it happened. Developed in-house, the tool uses cross-network analytics to create a 360-degree view of a member, which PSCU said enables it to link events through artificial intelligence across different platforms, individuals across different institutions, merchants across any card and all of these points to each other.
“Using these connections, data scientists at PSCU then utilize research and machine learning to proactively take action,” the company added.
As CUToday.info reported earlier, in 2017, PSCU said it became the first credit union service provider to begin utilizing Pindrop to fight contact center authentication fraud. In 2019, the company reported it was able to see $22 million in savings through the unique platform.
Proactive Blocking
“With the help of Pindrop, PSCU is able to proactively block attempted contact center fraud and move quickly to protect the available credit of those accounts from potential fraud loss,” the company added.
In addition to these solutions, PSCU said it offers Enhanced Fraud Services that provide additional fraud-fighting capabilities. “This includes an assigned fraud consultant, which enables a more customized approach for a seamless member experience that fits a credit union's vision,” PSCU said. “Ongoing dark web monitoring, dedicated portfolio observation and an understanding of the credit union’s risk tolerance fosters faster and more effective fraud detection.”
Added Lynch, “Fraudsters are becoming increasingly sophisticated – no single defense can withstand the constant barrage from probing criminals. That is why PSCU’s multi-layered approach, utilizing the most innovative technologies and processes available, has made us an industry leader in providing anti-fraud solutions to our owner credit unions, protecting them against losses from fraud, lost/stolen accounts and disputed transactions, among other threats.”