PSCU has prevented over $277 million in would-be fraud last year, 30 percent more than in 2018.
The credit union service organization (CUSO) said it blocked cybercriminals at several channel intersections, including at the point of sale, at its contact centers and other avenues. PSCU said it regularly invests in industry-leading cyberattack prevention tools – like machine learning (ML) and data analytics – across all channels.
Jack Lynch, senior vice president, chief risk officer at PSCU and president of CU recovery, said that as online fraud accelerates, PSCU is fully invested in new technologies “to prevent, fight and mitigate fraud loss.”
He added that the company uses proprietary tools to protect its customer base of owner credit unions, and strives to “stop fraud at every point of attack, while also minimizing the financial and reputational risk” that often comes with deceptive behavior. PSCU is also “committed to preserving the member experience and ensuring successful transactions at the point of sale.”
PSCU uses various technologies to fight fraud, including its Linked Analysis, which aims to prevent attacks before they happen. The cybercrime-fighting tool was developed by PSCU’s in-house fraud experts and uses “cross-network analytics to create a 360-degree view of a member,” the company said. This tool enables PSCU to connect transactions using artificial intelligence (AI) across different platforms, individuals and merchants across any card. Data scientists at PSCU use the links to tap research and ML to proactively take action.
PSCU also uses Pindrop to fight contact center authentication fraud, which saved over $22 million. Pindrop blocks attempted contact center fraud and works to protect accounts from loss. PSCU’s Enhanced Fraud Services assigns fraud consultants to members. The company also continuously monitors the dark web and has a dedicated portfolio observation protocol.
“Fraudsters are becoming increasingly sophisticated – no single defense can withstand the constant barrage from probing criminals,” Lynch noted. “That is why PSCU’s multi-layered approach, utilizing the most innovative technologies and processes available, has made us an industry leader in providing anti-fraud solutions to our owner credit unions, protecting them against losses from fraud, lost/stolen accounts and disputed transactions, among other threats.”
In the third quarter of 2019 alone, mass “bot” attacks on financial institutions (FIs) and card accounts rose by 70 percent year on year.