Summit Seeks Ways To Reduce Plastic Card Fraud
A summit on fighting plastic card fraud organized by CUNA Mutual Group here attracted more than 40 people from the nation's plastic card processors.
The meeting, held at CUNA Mutual's headquarters, discussed the challenges of plastic card fraud and means to develop new strategies to combat the wave of fraud consuming card-issuing credit unions, members, card processors and CUNA Mutual itself.
"By forming alliances, we all have a better chance of achieving faster, more effective solutions," said Marc Krasnick, CUNA Mutual senior vice president, Credit Union Protection.
Krasnick said plastic card fraud losses have reached unprecedented levels affecting processors and card-issuing credit unions. It also has had a major impact on CUNA Mutual, which projects 2005 plastic card claims will double those of each of the past six years. "Unless we get a handle on this situation, it could ultimately affect the ability of credit unions to continue providing plastic cards to their members," Krasnick said.
In addition to Krasnick, summit speakers included CUNA Mutual fraud prevention experts Ann Davidson and Michael Harty, and Chris Ryan, director of global fraud solutions with Fair Isaac. Presentation topics included a review of plastic card exposures and credit union loss trends; plastic card coverage implications, including an explanation of CUNA Mutual's plastic card fraud coverage, underwriting, and claims service; neural network best practices, and security measures best practices
CUNA Mutual said it was the first time credit union industry card processors and service providers had convened as a group to discuss plastic card fraud issues.
"We (card processors) need to play a leadership role in driving changes for credit unions to help them manage fraud," said Tim Kaliban, vice president, product management, Certegy Card Services, which serves more than 4,000 credit unions.
"Any time you get this many people together that share the same passion for fraud prevention, only good things can happen," added Stephanie Cook, VP-fraud services with Metavante Corp.