Des Moines, Iowa-based The Members Group announced its fraud detection and prevention strategies saved financial institution clients, which includes $6.9 billion San Diego County Credit Union, $28 million in potential losses in 2014.
TMG said this represents a nearly 40% year over year increase from the $20 million TMG saved its clients in 2013.
“Speed and behavior-based fraud detection are critical differentiators for TMG's prevention program, which more credit unions and community banks than ever before in the company's history are relying on for protection,” TMG's Karen Postma, AVP of fraud operations and asset management, said. “The most innovative technologies combined with skilled, experienced fraud analysts allow our fraud team to safely authorize more transactions, which ultimately leads to a better cardholder experience and more revenue for our partners.”
Visa recognized SDCCU as one of six Service Quality Performance Award winners based on the issuer's measurable e-commerce fraud prevention strategy. Visa noted SDCCU's strategy resulted in a high authorization approval rate and a low fraud-to-sales ratio. The brand called SDCCU highly efficient in its processing of e-commerce exception items.
According to Postma, it is important to note the calculations TMG used to arrive at the $28 million total savings were conservative, based only on the minimal amount saved.
The typical financial loss incurred by companies due to payments fraud in 2013 was $23,100 according to the “Payments Fraud and Control Survey, sponsored by J.P. Morgan.
TMG's suite of fraud products and services includes Fraud Text Alerts and Adaptive Control, a fraud-detection solution that monitors cardholder behavior over time, assigning custom, real-time strategies on an individual, cardholder level. In October of 2014, TMG's MasterCard-issuing clients received access to MasterCard Expert Monitoring, which provides real-time fraud scores.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
