FRAUDAY Newsletter
November 17th, 2023
Discover tips for protecting customers from holiday scams and read about USAlliance Federal Credit Union's switch to Effectiv from a legacy KYC provider in this month's FRAUDAY newsletter.
FRAUDAY Newsletter
November 17th, 2023
Discover tips for protecting customers from holiday scams and read about USAlliance Federal Credit Union's switch to Effectiv from a legacy KYC provider in this month's FRAUDAY newsletter.
ISSUE #7 | November 17th, 2023
USAlliance Federal Credit Union Cuts Manual Member Application Reviews by 50%
In 2022, USALLIANCE Financial faced significant hurdles in fraud detection and risk management with their existing system. They required a more dynamic, bespoke solution to optimize risk decisions and improve operational efficiencies in member onboarding and reporting. Their switch to Effectiv marked a turning point, showcasing remarkable improvements to their processes.
Challenge
USALLIANCE Financial’s previous system lacked essential functionalities such as inability to generate reports internally which led to an unclear risk assessment processes during member account onboarding and loan applications. This created operational ambiguities, preventing a comprehensive understanding of risk-related decisions.
Solution
Choosing Effectiv was a strategic decision driven by our platform’s adaptability and customization. We collaborated closely with USALLIANCE Financial to develop a tailored solution, enhancing clarity in application decisions and streamlining workflows. This collaboration brought about a seamless integration of custom fields, aggregators, and enhanced data visualization, leading to significant operational efficiencies and cost reductions.
Results
The transition to Effectiv yielded several key benefits for USALLIANCE Financial:
- Customization: Effectiv’s ability to adapt to specific needs enabled USALLIANCE Financial to tailor their decision-making processes, enhancing risk assessment accuracy.
- User-Friendly Reporting: The introduction of easy-to-understand reports improved the decision-making process. As noted by Monica Kendall, a Compliance & Risk Specialist at USALLIANCE, this feature significantly enhanced their business decisions.
- Dashboard and Data Integrations: Effectiv’s dashboard with features like geolocation and device tracking streamlined their fraud detection, reducing fraud losses and operational costs.
- Scalability and Future Integration: USALLIANCE Financial is now considering expanding the use of Effectiv’s platform for other services such as business onboarding (KYB) — further highlighting Effectiv’s scalability and adaptability.
Impact
Post-implementation, USALLIANCE Financial saw a reduction in manual reviews by 50%. This streamlined their fraud detection process and positioned them for future growth and integration.
In The News
🟣 Zelle Finally Caves After Years of Refusing to Refund Scam Victims
Zelle’s network operator found a solution that lets Zelle’s network of 2,100 financial firms off the hook for reimbursing transactions. Instead of expecting financial partners to foot the bill to cover this fraudulent activity, Zelle simply “implemented a mechanism that allows banks to claw back funds from the recipient’s account and return them to the sender.”
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💳 21 Startling Credit Card Data Breach Statistics
Although security systems are developed to prevent these crimes that lead to identity theft and fraudulent activity, criminals often seem to find a way around them. Here are the most significant and recent credit card data breach statistics.
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💸 US Real-Time Payments Transactions Expected to Quadruple by 2027
While it is difficult to predict which countries will be the next to adopt new real-time payment networks, it is evident that the future of real-time payments is poised for continuous innovation, expanded use cases and a more interconnected global financial ecosystem.
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🎄 ’Tis the Season for Fraudsters and Gift Card Scams
Gift cards have become an attractive target for fraudsters due to their easily monetizable nature. Using stolen credit card information, fraudsters can purchase gift cards, which can then be resold or used for purchases. Gift cards provide fraudsters with a level of anonymity, as they can be sent electronically or used directly in-store. And there are generally no chargeback options, which makes it virtually impossible to recover funds.
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