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While a necessity for maintaining security, fraud prevention measures can also improve the member experience. 

For Fraud Prevention Month, consider how your credit union’s members adopt anti-fraud measures. Do they see these initiatives as an inconvenience, or a necessity? Below are four services your credit union can offer to help members appreciate fraud prevention and stay secure. 

Debit Card Management 

Debit card management technology that includes a card lock feature offers a proactive measure against fraud. This feature allows members to instantly ‘freeze’ or ‘lock’ their debit cards through their online banking app. When a card is locked, it cannot be used for new transactions, effectively preventing any unauthorized charges if the card is lost or stolen.  

The ability to lock a card provides peace of mind and a quick response to potential threats. If a member misplaces their card, they can immediately lock it, which stops a thief from making fraudulent charges with the card number.  

Should the card be found later, it can be unlocked just as easily, without the need to replace the card or alter automatic payment setups. This also reduces the hassle of disputing fraudulent charges and the subsequent wait for a new card, which can be a significant inconvenience. 

User Identity Verification 

Fraud prevention initiatives can also double as opportunities to enhance member trust and satisfaction. Offering various multi-factor authentication (MFA) options can appeal to individual members’ needs. MFA uses a combination of these authentication options: 

  • “Something you have,” such as a smart phone that can receive codes through texts or calls, or a one-time passcode (OTP) from an authenticator app. 
  • “Something you are,” referring to biometric data (fingerprint, face ID). 
  • “Something you know,” like a password or security question 

Using security questions as an authentication measure is slowly being phased out, as that is the least secure option. However, some members may consider using biometrics as an invasion of privacy and reject this method. Others may have limited access to smart phone authentication apps.  

Credit unions should strive to balance flexibility and security. Identity verification is necessary to prevent fraud, and offering a variety of authentication options will make the process less inconvenient for members. 

Explaining the purpose of identity verification and which options work best to help protect members from fraud could help reduce friction and promote user adoption.  

Fraud Education 

Explaining the purpose of any anti-fraud initiative can be beneficial. Offering resources about the significance of fraud and how to avoid it fosters that sense of member-care that credit unions are known for. Here are some ideas: 

  • Host workshops & programs. Offer interactive workshops for at-risk groups, such as seniors. Launch a digital literacy program for kids and their parents on what secure online behaviour looks like. 
  • Share member testimonials. Highlight stories of members who faced a scam but were able to avoid it because of the resources and security initiatives offered by your credit union. 
  • Launch a social media campaign. Use your credit union’s social media platform to post fraud information that is relevant and shareable. Free fraud prevention month resources can be found on the Government of Canada’s website. 
  • Train employees. Cultivating a culture of security across a credit union begins with the staff. Ensure that employees have up-to-date training on the latest cyber security threats.  
  • Provide regular updates. Reach out to members through newsletters, emails, or within a banking app to notify them of current scams. Point members towards tools such as transaction alerts. 
  • Offer anti-fraud tools. When sharing fraud updates, include helpful resources. Point members towards tools like transaction alerts, card management services, or your credit union’s fraud reporting system. 

Of course, this last option requires your credit union to have an established way for members to reach out and report fraud. 

Fraud Reporting 

When a person realizes they have been scammed or are at risk of being scammed, there is an urgent desire to resolve the issue. What system does your credit union have in place for members to engage with during this scenario?  

It is helpful when financial institutions clearly display on their website and within their digital banking platform what steps to take if consumers encounter or suspect fraudulent activity. The first step listed is usually to call the institution to report the fraud. 

Often banks and credit unions will have call centers that respond to fraud claims. This process may upset or alienate the already stressed-out fraud victims. Most members do not want to wait for long hold times. Other members, particularly Gen Z and Millennials may dislike having to call their credit union — especially if it is to confess that they fell for a phishing scam or lost their card. 

This emphasizes the importance of having a variety of easily accessible ways for members to contact their credit union. Secure messaging and live chat functions can be an alternative way for members to report fraud and suspicious activity. 

By integrating texting-like chat options into your member contact center, credit unions can improve their efficiency and member satisfaction. An ideal conversational engagement platform will be secure, user friendly, and easy to access through a digital banking app. These features can ease the stress of handling fraud. 

To learn more about how Celero can assist you with any security needs and questions, talk to your Celero Account Executive or contact us.   

You can also follow Celero on LinkedInTwitter and Facebook. Monitor the hashtag #FPM2024 this March to discover resources to help keep your members secure. 

About Celero
Celero is a leading provider of digital technology and integration solutions to credit unions and financial institutions across Canada. Clients trust Celero’s proven track record delivering innovative banking technologies, digital and payment solutions, cloud computing, outsourcing, IT and advisory services.

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