Last year, well over half of all financial institutions lost more than $500,000 to fraud. However, for the credit union industry, it was even worse.
According to Security Magazine, fraud rates at credit unions increased by a staggering 70%. That’s a near doubling in the instances of fraud over the course of just a year.
Simply put, criminals are now specifically targeting credit unions, and, as a result, fraud rates (and costs) have gone parabolic.
Today, for every $1 in fraud, financial institutions are incurring an average of $4.36 in resolution costs. This is putting an enormous strain on credit unions, both financially and reputationally.
But while there seems to be no stopping it (or even slowing its growth) there are tools available to credit unions designed specifically to help mitigate, and potentially eliminate transactional fraud.
In a moment, we’ll reveal why so many credit unions haven’t yet incorporated these tools, and we’ll show you the best-in-class artificial intelligence solution that’s already helped reduce fraud costs at credit unions by over $200 million.
But first, we must discuss some facts on fraud, and why CU executives should be paying closer attention to their members’ concerns.
As recently noted on CFO.com, 7 out of every 10 financial institutions reported fraud losses exceeding $500,000 last year.
Not so surprisingly, CFO showed that a huge percentage of professionals working in fraud related roles at FIs reported an increase in fraud rates year-over-year; and 71% said they’ve increased spending on fraud mitigation.
But, as stated earlier, credit unions (and their members) bore the brunt.
You see, not only have fraud rates increased at credit unions (as they have almost everywhere), but they’ve increased by an alarming 70%.
And, while most financial institutions incurred at least $500,000 in fraud related losses in 2022, one out of every five CUs and community banks reported even bigger fraud losses: ranging between $1 million and $10 million.
And it’s causing incredible reputational harm.
When asked about banking, 74% of consumers say that “good fraud protection” is paramount when opening (or keeping) an account. Yet only 27% of credit union executives invested in modern fraud management and mitigation systems last year, down from 57% in 2021.
Unfortunately, the top concern of credit union executives has nothing to do with fraud. It’s rising interest rates. While this is a legitimate organizational concern, it’s nothing that can be controlled by the organization, and it’s not what’s most concerning to members.
With 74% of consumers citing proper fraud protection among their top considerations when opening an account (or keeping one), the number one concern for CU executives, one they can control, should be member loyalty, and addressing it with modern fraud protections.
It’s why you should immediately consider incorporating RembrandtAi™.
RembrandtAi™ is an all-encompassing, real-time fraud detection and prevention solution for all transactional banking. It incorporates all of your core, offline and online systems into one easy to use interface, alerting your human fraud teams of potential threats as they’re occurring….
Rather than in the old, ineffective way: post-transactional batch data analysis with obsolete legacy systems.
With fraud rates growing at a parabolic rate, and mitigation costs rising just as fast, now’s the time to fight back.
Now’s the time to consider your members concerns and your bottom line…
Now’s the time to incorporate RembrandtAi.
You see, RembrandtAi™ was developed specifically to help credit unions combat fraud and it has already proven to help save hundreds of millions in losses…
And it’s ready to help yours do the same!
Experience a full demonstration of the remarkable RembrandtAi™ fraud detection and prevention technology and discover how it helps credit unions like yours save massively on fraud costs, while helping to ease member concerns and solidify your bottom line.