Tis the Season for Theft Prevention
Posted by Karen Coble, VP Sales, Catalyst Corporate FCU on 12/22/2016

In the classic winter movie, Home Alone, a couple of robbers target homes where they know (or rather, they think) families are out on vacation. Their plans to loot one home are thwarted by Kevin McAllister, an overly-prepared eight-year-old determined to protect his house by any means necessary.

The movie is full of life lessons and hijinks, but at the root is the vulnerability of people during the holidays, as things are often rushed, busy and forgotten. However, with proper preparation, you can stop even the stickiest of bandits from taking what rightfully belongs to you!

This concept leaves me asking the question: are credit unions prepared to protect their "house" from the same types of dangers that lurk around deposits year round?

With remote deposit services on the rise, it’s becoming more important to verify the authenticity of the deposits we process. Credit unions can do this a number of ways, but perhaps the most effective way is through real-time deposit fraud protection.  What advantages does real-time fraud protection offer? Here are a few:

Immediate results: With real-time fraud protection, tellers know immediately whether a transaction is valid – while the member is still at their station. Credit union staff reviewing transactions from other deposit channels can take action when they're notified of high-risk deposits. There is no waiting period or labor associated with processing chargebacks and recovering funds. Deposits that are not able to be collected do not receive approval.  

Prevention of costly fraud: Check fraud costs financial institutions over 1 billion dollars, according to fraud data collected by the Fed in 2012. The data shows that account holders did not authorize nearly a million checks during the period before recoveries. The total value of those checks totaled more than $1 billion, with an average value of $1,272 per fraudulent check payment.

Real-time fraud protection can dramatically decrease deposit losses. Real-time fraud protection allows credit unions to use account information reported by financial institutions nationwide. Information helps determine whether deposited checks are written on lost or stolen check stock, on closed accounts or on accounts with insufficient funds. This not only cuts down on fraudulent activity, but also promotes…

Outstanding member service: Preventing fraud and protecting members in a timely and cost efficient manner, helps members avoid returned checks and the potential for overdrawn accounts and overdraft fees. Additionally, this provides members with the peace of mind of knowing that your credit union is doing everything it can to protect them from fraudulent activity.

By protecting your credit union against unwanted intruders, you’re giving your members a gift they will treasure all year long!

Categories: Business Partners, Education & Training, Remote Transaction, Sales & Service
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