Credit Union Secures Card Data for Members on the Go

Nowadays, it’s not enough for credit unions to just provide credit and debit cards to their members. They must also shield them from cybersecurity threats such as account fraud.

The $4.9 billion, East Lansing-based Michigan State University Federal Credit Union allows its members to effectively manage their finances as well as protect their accounts from fraud thanks to a couple of Visa enhancements it implemented last year.

Founded in 1937, MSUFCU manages the accounts of more than 250,000 members from the Michigan State University and Oakland University communities. Like other credit unions, as membership continues to grow, it is offering more products and services tailored to the needs of its members.

And the Michigan credit union’s members have some distinctive needs. “We serve a variety of different membership groups that are constantly on the go. From college students studying abroad and graduating students moving across the nation, to working professionals and retired members traveling around the world, our mobile app allows our members to effectively manage their finances no matter where they are,” Deidre Davis, MSUFCU’s chief marketing officer, said.

According to the Federal Trade Commission, in 2017 there were almost 140,000 reports of credit card fraud in the U.S. involving new accounts (105,209, up 3% from 2016) and existing accounts (34,260, up 20% from 2016).

Recognizing the threat, MSUFCU released two new features for its Visa credit and debit cardholders last year, offering greater control and protection of their accounts. Additionally, the credit union noticed some key societal trends. “We understand the importance of mobile technology and reassuring the security of our members,” Davis noted.

Visa card lock and mobile location confirmation capabilities help members feel more safe and secure while on the go, as they are always in control of their cards and notified of possible security risks. Here’s a breakdown of the features:

• Visa card lock allows members to lock and unlock their Visa credit and debit cards from their mobile devices. For instance, say a member leaves their credit or debit card at a restaurant. They can log into their account through the mobile app and lock down the card to prevent any unauthorized purchases. Once the card is located and the member is certain no compromise took place, they can unlock it with a few taps.
• The mobile location confirmation feature aids fraud prevention by comparing the whereabouts of a member’s mobile device to where their card is being used. Once enrolled in the service, a member’s device shares its location with MSUFCU and Visa, which is factored into Visa’s transaction approval process.

MSUFCU said it has used the new Visa card features to enhance member experience and security. For instance, card lock control gives members an added sense of security, since they know they can turn their card off without having to go to a branch or contact the credit union. “Members often call us to block their cards if they believe their cards have been lost or stolen, when in actuality, they’ve only misplaced them,” Davis said.

She added the Visa card lock feature gives members peace of mind, as they can secure their card, take time to locate it and then unlock it. By locking a card, no one can use it to make purchases, including authorized cardholders. However, recurring transactions attached to the card are unaffected by the lock. “This feature offers uninterrupted service as they are able to immediately turn the cards back on without the hassle of calling or visiting us to block their old cards and issue them new ones,” Davis added.

Davis noted by offering these noninvasive controls, MSUFCU has integrated security features that fit members’ everyday routines. “Making time to visit a branch or trying to call us after business hours can be a concern for members who need immediate assistance.”

Extra card security is also essential for members who travel, the credit union maintained. “As individuals make various transactions while traveling that may seem unusual compared to their typical spending patterns, we are able to present more security features so they are not inconvenienced when traveling,” Davis said.

The location feature also reduces other potential complications. If members forget to notify the credit union of their travel plans, they could experience a transaction failure due to suspected unusual activity. However, the mobile location confirmation feature helps prevent a card from being declined by matching the phone and transaction to the same place.

The overall response from members regarding the card lock and mobile location confirmation enhancements to its mobile app has been positive. One member stated in a product review, “I’m liking the features you have added to this app. Among one of the best as far as banking goes. The single greatest plus is the card locking capability.” About 2,000 members have used the card lock feature, which is 1.7% of all cardholders. Some 1,500 members activated the mobile location confirmation feature – 1.22% of all card holders.

“Understanding the constant on-the-go lifestyles of our members, we wanted to offer services that gave them more control and protection, with minimal disruption. Our Visa enhancements meet the unique needs of our members while giving them added security to ensure their accounts and cards are protected at every turn,” Davis stated.

MSUFCU has enhanced the mobile experience in other ways as well. The credit union sought to design the app with features that would increase account accessibility and provide opportunities to learn about the benefits available to members. These other features include My Offers, e-deposit and bill payment.

Through My Offers notifications, the credit union directly connects accountholders to relevant deals, community events and member benefits. With e-deposit, members can scan or take a photo of their checks and automatically apply them to their MSUFCU accounts. “They no longer have to worry about visiting a branch or ATM to deposit their checks. Plus, it’s free,” Davis said.

Another free feature, bill payment, allows members to set up disbursements in the mobile app automatically or as needed. Disbursements may include paying utility companies, making person-to-person or account-to-account transfers, and sending gift checks.

“While all of these features are helpful, they are only some of the capabilities that members have through our mobile app,” Davis explained. Other features allow members to open a certificate, view interest and dividend rates, use loan calculators, and send a communication through the e-message center.

The credit union supports a healthy number of users for all channels, but especially via the mobile channel. In 2017, it had a total of 16,898,790 mobile app logins by members. That same year, it had 5,465,267 branch transactions, 3,953,486 ATM transactions and 9,382,386 ComputerLine logins.

Approximately 60% of members interact with MSUFCU mostly through the mobile app. For the month of June 2018, 165,000 members used ComputerLine or the mobile app, or both; 59,000 members used only mobile and 50,000 members used only ComputerLine.