PLEASANTON, Calif. — Seeing card fraud losses on a spreadsheet is one thing. But when more than $9,000 in such charges turn up on the personal credit card of an executive 1st United Services CU as the result of skimming, it really spurred USCU to take action.
Thanks to a partnership with Fidelity National Information Services and the company's "FIS Secured Debit and Credit program," 1st United Services has realized dramatic reductions in all types of fraud, including a 41% decrease in gross fraud during a time fraud has trended up in the financial services sector. Average dollars per fraud case dropped 59% from 2006 (the year prior to implementation) to 2007, and then another 36% from 2007 to 2008 at the credit union.
Credit Union Journal has named 1st United Services CU a 2009 Best Practices winner for Innovative Approaches to Credit and Debit Card Fraud Prevention.
Tony Fernandes, head of development for 1st United Services, said one key to the fraud prevention effort's success was the amount of work that was done prior to selecting the FIS product.
"Because we had done so much research, it was easy for us to implement the program," he said. "We were very pleased with how plug-and-play the FIS Secured Debit and Credit Program was."
CUs using the FIS Secured Debit and Credit program have access to the FIS Fraud Analytics team, which the company says allows financial institutions to "surgically attack" and prevent more fraud. At the same time, efforts are made to reduce any potential negative impact on spending activity by legitimate cardholders. The FIS Secured program provides a service guarantee, extending a warranty to enrolled clients against unrecoverable fraud losses.
Fernandes told Credit Union Journal it is vital to have an education program in place that teaches members how to recognize and avoid fraud, rather than simply relying on technology to save the day.
"We are very proud of our identity theft program, and I lead classes on how to prevent fraud from happening to people," he said. "These classes cover check fraud, identity theft, online theft, and any other type of fraud that goes with identity issues. We are really trying to educate our members about it, what to look for and how to take care of it."
1st United Services CU's fraud prevention efforts are buttressed by two employees dedicated to the task, plus a consultant, Fernandes continued. He said the credit union has two "strong fraud prevention specialists" in house who have worked in the business for many years, plus a police officer from the nearby city of Fremont advises management on "what to do for any types of fraud."
Best Practices CUJ 2009
CU: 1st United Services
Best Practice: Card Fraud Reductions
Vendor: Fidelity National
