It’s widely recognized in the payments industry that attempted fraud incidences increase during times of crisis, and the coronavirus pandemic is the latest example of this. We’ve seen a year over year increase in fraud attempts, with this trend continuing into 2021. Having the right tools in place to stop fraud before it happens is just one piece of the puzzle when managing the expectations your cardholders have. How your credit union responds is paramount to the experience your member has if and when fraud hits their account.
Your members have become more reliant than ever on their debit and credit cards as the main source of payment for day-to-day purchases. They also carry the expectation that access to their funds will be at their fingertips and without interruption. When an account is compromised, having immediate solutions in place that ensure secure and convenient access to their funds can ease the stresses associated with fraud, delivering value to the member and ultimately top of wallet status for your card.
This can be accomplished through technologies that include digital card issuance, member card controls and tokenization. Your credit union can be the oasis during a time of fraud recovery, while also building trust as your primary financial institution.
Digital issuance provides the ability to issue a replacement digital card on demand and provision the card into a mobile wallet for immediate use online and in apps. While the physical card is in transit, security features are in place that restrict in-person transactions until the physical card is in-hand and activated by the member.
Card controls via online platforms or apps combined with tokenization can help protect members from fraud. Card controls allow your members to turn their cards on and off, track spending, get real-time alerts, dispute charges and report missing cards, all of which help minimize the impact of attempted fraud.
Tokenization goes a step further by converting sensitive information into tokens which mask the PAN data. This token is then transmitted for authorization thereby averting a fraudster from capturing your members’ critical card information. Members using their mobile payment wallet instead of cards can also utilize their phone’s security features to block others from accessing sensitive data. By protecting your members’ information, tokenization helps strengthen members’ confidence in your credit union while making purchases using their credit union cards safe and convenient.
Digital technology has a strong, positive impact on how your credit union can address the member-facing side of fraud. It’s key to building stronger, ongoing relationships with your members as fraud attacks increase. Quick card issuance to replace compromised cards provides added convenience when members are faced with fraud while added protections increase peace of mind.
Keeping members informed through your marketing efforts is important to developing their trust. This means educating members about the benefits and availability of these digital services and protections. Clear, regular communication can improve member understanding of how your credit union is there to help them fight fraud and get on with their lives if it occurs.
LSC and our partners are here to help you understand the digital payment technology available to you. Contact us at 1-800-942-7124 to learn more.