PSCU Debuts AI-Driven Fraud Decisioning Tool

Credit union service organization PSCU has unveiled a tool to ferret out fraudulent transactions.

The Intelligent Fraud Decisioning Solution uses cognitive artificial intelligence (AI) and advanced data analytics to detect and block transaction fraud, PSCU said in a news release provided to PYMNTS Tuesday (April 4).

“As an integrated financial technology solutions provider, PSCU is committed to providing innovative, reliable services that combat fraud while improving experiences for credit unions and their members,” said Jack Lynch, chief risk officer and president, TriVerity at PSCU.

“As fraud attempts continue to become more sophisticated, we are pleased to offer this new Intelligent Fraud Decisioning solution to elevate our owner credit unions’ fraud risk detection while minimizing impact to members.”

PSCU said the tool will be available this spring and also lets credit unions (CUs) boost efficiency by saving time when analyzing fraud data.

“PSCU’s Intelligent Fraud Decisioning solution produces exceptional user experiences that, combined with enhanced fraud protection, drive continued card use and confidence among credit union members,” said Karen Postma, PSCU’s managing vice president for risk analytics and fraud services at PSCU.

“The upgraded decisioning engine will facilitate retention and revenue growth for credit unions while staying ahead in the fight against fraud.”

PYMNTS spoke to Postma last week about the industry’s antifraud efforts, and the need for CUs to reassure their members that their data is being kept safe.

“Credit unions inherently have this relationship with their members, and there’s trust in place that’s greater than the trust they might have in some of the big banks or the FinTechs,” Postma told PYMNTS.

That trust can be leveraged, she said, as CUs try to educate consumers about the efforts they are undertaking to enhance data security.

With that in mind, Postma added that geolocation technology, biometrics and one-time password (OTP) can offer anti-fraud protection that improves on traditional methods of address verification and mother’s maiden names that no longer feel like effective ways to protect consumers in the digital age.

Meanwhile, PSCU CEO Chuck Fagan told PYMNTS last week about the durability of CUs in the face of the recent banking crisis.

After the crisis, PYMNTS wrote, the conventional wisdom posited that consumers would move their money from smaller banks — and credit unions — to giants like JPMorgan. Fagan, however, said most CU members are staying where they are.

“Though there may be doubts in the market,” Fagan told PYMNTS’ Karen Webster, “it’s my hope that trust wins out because of the past history and performance of the credit unions.”

As he put it, “The credit union industry is very collaborative. That’s been a positive — there are pockets of CEOs that have gotten on calls together” to come up with strategies to communicate to members that their deposits will be safe.