<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=2797612&amp;fmt=gif">

Florida credit union overhauls its fraud prevention with big assist from AI

American Banker
May 6, 2022

As algorithmic techniques for fraud prevention improve, financial institutions have more and better options to stop losses in real time rather than try to recover funds hours or days after the fact.

Rather than rely on tellers to identify whether a check is fraudulent or a wire transfer is authorized, credit unions and community banks increasingly identify and prevent fraud with machine learning, but some still lag. For institutions that make the leap into real-time fraud prevention, the gains can be major.

That was the case for Launch Credit Union, which serves a six-county area on the Atlantic coast of central Florida, and switched to a real-time solution at the end of 2020. The credit union’s chief financial officer claims it reduced fraudulent transactions across its 16 locations by 97% after purchasing the product, saving $1.8 million in 2021.

"Fraud prevention that uses artificial intelligence can be thought of as a means of superpowering fraud teams — acting as a force multiplier," according to Greg Woolf, FiVerity’s CEO.

 

You may also like

Online fraud jumps 87.5% in < a year during economic downturn
Online fraud jumps 87.5% in < a year during economic downturn
18 August, 2020

In 2008, the number of complaints about online fraud jumped from 200,000 to more than 375,000 one year later, according ...

FiVerity Launches Collaborative AI Solution Supported by Top Banks & CUs
FiVerity Launches Collaborative AI Solution Supported by Top Banks & CUs
10 November, 2020

FiVerity and NCFTA jointly issue a security bulletin on more effective ways to combat synthetic identity fraud