Advice: Incorporate Tests
COSTA MESA, Calif.-The ability to integrate improved credit reporting with technology solutions is one tactic for fraud prevention every CU should be monitoring, according to one expert.
Branwyn Rhodes, director of communications for MeridianLink, a provider of Web-based credit reporting, and loan and account origination technologies, told Credit Union Journal:
"A combined credit report, which includes data from all three credit bureaus, offers a better window into someone's financial history," she explained. "Some of the platforms used to automate member financial services can easily access this level of comprehensive data."
Automation also allows a credit union to get to a "very granular" level when it comes to defining guidelines, either for new accounts or risk-based lending, Rhodes said, adding CUs should leverage the ability to set different guidelines and alerts depending on the channel-in branch, indirect or online.
"Credit unions can establish better security barriers by incorporating a series of tests to verify identity and substantiate data," she said. "When integrated into the system, a program that sets the bar high when it comes to verifying identity locks the doors to critical information."
Technology provides the ability to parse data and allow for a greater degree of customization and flexibility when defining guidelines, she continued. "This can have a major impact in alleviating the potential for fraud, and at the same time minimize risk."