Velera Urges Credit Unions to Break Down Silos for Stronger Fraud Protection

Credit unions must adopt a holistic, enterprise-wide approach to fraud prevention, Velera Chief Operations Officer Dean Michaels writes in the latest PYMNTS eBook, “Halftime 2025: Charting the Future of Payments.”

​​In today’s increasingly digital financial landscape, credit unions face growing pressure to deliver secure, seamless member experiences while operating more efficiently. Fraud prevention remains one of the most significant challenges, especially as fraudsters are using artificial intelligence (AI) and sophisticated digital tools to carry out attacks faster, more frequently and at greater scale. To stay ahead, credit unions must adopt their own advanced AI and data analytics strategies — not only to detect and stop fraud, but to enhance operations and elevate the member experience.

At Velera, the nation’s premier payments credit union service organization (CUSO) and an integrated financial technology solutions provider, we continue to invest in the resources, tools and personnel to help credit unions rise to this challenge. A cornerstone of our approach is Linked Analysis, our proprietary industry-leading fraud prevention tool that leverages machine learning and advanced data analytics to aggregate fraud signals across all channels and transactions in real time. It connects and analyzes member interactions across card, digital, branch and more — enabling early detection and proactive intervention.

This powerful technology not only strengthens fraud defenses, but also contributes to greater operational efficiency. By automating complex monitoring tasks and delivering real-time intelligence, Linked Analysis reduces the manual burden on credit union teams. At the same time, the insights it generates can be used to personalize member offerings, such as customized member risk approaches or enhanced alerts — turning fraud prevention into an opportunity to improve service and engagement.

Recognizing that every credit union has unique needs and resources, Velera recently introduced a tiered risk management service model. This model provides credit unions with flexible, scalable options tailored to their risk profiles and operational realities. Whether a credit union is just beginning to invest in fraud mitigation or already has a robust program in place, customized support ensures alignment with its goals today — and adaptability for tomorrow.

Beyond Velera’s internal innovations, we are committed to helping the broader financial services ecosystem navigate an increasingly complex fraud landscape. For example, Velera’s recently released consumer-engaged fraud white paper helps institutions better understand the evolving nature of fraud, classify incidents accurately and reduce both institutional and merchant exposure.

As we look to the second half of 2025 and beyond, Velera sees a growing need for credit unions to expand fraud prevention beyond functional silos. Credit unions must adopt a holistic, enterprise-wide approach — one that considers fraud risk across lending, cards, digital banking and member support collectively. By focusing on solutions addressing this need, Velera can empower credit unions to move beyond reacting to fraud to getting ahead of it — protecting their members, streamlining operations and delivering stronger, more secure financial experiences.