BY CHUCK FAGAN, PRESIDENT & CEO, PSCU
As anticipated, 2018 proved to be a year of accelerated evolution of the payments landscape. Credit unions across the country were driven to invest in the development and deployment of new technologies and innovations to deliver the best experience possible for their priority stakeholders – their members. Credit unions and CUSOs must remain steadfast in their mission to provide seamless experiences and best-in-class offerings and solutions to consumers by focusing on three priority initiatives in 2019:
Fraud and security will continue to take center stage as credit unions search for innovative ways to fight emerging fraud threats and increasingly sophisticated fraudsters. According to PSCU’s recently released Eye on Payments study, 13 percent of credit union members have been a victim of card fraud and 4 percent have had their identity stolen in the last year alone. Similarly, 11 percent of non-credit union members were a victim of card fraud and 4 percent had their identities stolen during the same time period.
Credit unions can no longer monitor a single channel to stop fraud in today’s digital and interconnected world. The recent Starwood Hotels guest information database breach proves this point. Marriott indicated an exposure of names, mailing and email addresses, phone numbers and passport IDs, among other information. When data breaches occur at this magnitude and expose this level of information, it is not enough to simply monitor for traditional card fraud – you must find ways to combat the entire account takeover both online and via contact centers, among other channels. Linking these channels together – from in-person, to phone calls and online activity – is the only way to efficiently stop fraudsters before they have the chance to attack. To that end, credit unions should utilize data and analytics tools to proactively protect their members, which in turn safeguards the member experience and the credit union’s assets. While data and analytics are a driver for marketing promotions and attracting new accounts, learnings from these tools are critical today to help thwart impending threats from fraudsters.