Monitoring and minimizing fraud in Shared Branching

Published by: Kim Connor

May 14, 2020 | Uncategorized

Financial fraud is everywhere; account take-over, elder fraud, counterfeit checks, and stolen credit cards are just a few examples. However, it can be managed well through awareness, education, and technology. In February 2019, COOPER Fraud Analyzer started monitoring transactions for all Shared Branching credit unions by leveraging data and technology to identify suspicious transactions and learn from accumulating information. COOPER’s artificial intelligence enables the system to evolve rapidly with the fraudulent activity it combats, and great progress is evident in the latest statistics:

  • 24% decrease in the average fraud loss per case from 2019 and 2020
  • 69% decrease in fraud losses between Q1 2019 and Q1 2020
  • $1,000,000 surpassed in fraud stoppage since COOPER inception
  • 15 arrests in 2019 and over $120,000 in fraud losses tied to arrested suspects

Putting COOPER to work is just one part of combatting fraud. There are other important steps your credit union can take:

  • Monitor daily shared branching reports for large check/cash deposits and large withdraws
  • Limit shared branching access for members that don’t have any relationship other than a savings account (until needed for more active member usage)
  • Use additional security measures/questions or involve a supervisor when a guest member has an out-of-state driver’s license, from an out-of-state credit union, and is requesting a large check or cash withdraw
  • Always pay close attention to the name on the account matching the name on the driver’s license

Thank you for doing your part to protect all credit union members from financial fraud through the Shared Branching Network. Please contact Senior Business Solutions Manager Marty Auxter for more information.

CONTACT US

E: mauxter@ohiocul.org
T: (614) 336-2894
C: (614) 581-5926

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