Video Accordian Test

One of our biggest challenges that we've seen, and it's actually a trend that's coming across a lot of credit unions is a target to member-to-member transfer fraud. And it's because it, rides the internal transfer rails instead of, you know, it's not money that's, leaving the institution, it's this transfer within the core.

And what we're seeing is fraudsters are targeting it. They open their own fraudulent account. They have an online account takeover of a member. They log into their profile and they send that' money to themselves, and then it's their money, and it's there in real time. So they have it, and then it's a wire out, it's a, you know, whatever they can get out money real time, whether it's a withdrawal in a branch, it doesn't matter. Um, so that's a big one we're trying to combat right now. There's been some significant losses in that area across the credit union space. So member-to-member transfer is something that's a little more unique to the credit union space, and they're a target. And they're specifically targeting low-hanging fruit that have one-time PIN or secure access codes as the login method.

And it'sjust not sufficient anymore, you know? There's SIM swaps, there's email compromises, and then there's social engineering, and those low levels of security make it easier to social engineer somebody into being able... And then you go in and there's no friction on, member-to-member transfers, and it' rides the same available balance limits that an internal transfer does.

So there's very little to put in place. It's just without additional friction points, it's just insufficient. Every time a member's profile gets compromised or something happens, whether they take the loss or you as an institution takes a loss, your reputation takes a loss. And it's word of mouth and it's that type of stuff. So once they're in, there's no more friction, and they do what they want. I need a solution that provides friction internally. Once they're inside, you know, you go and click on member-to-member transfer and they
get a notification that says, "Do... Are you attempting to do a member-to-member transfer?" Like, that's how we' combat that problem right now.

You put that friction in place and that number is gonna plummet. You know, I need, I need internal friction, not just transactionally, but, you know, changing addresses within the digital space, like, those are first, the turning off alerts, all of that stuff. So I'm looking for a solution that, one, doesn't leverage OTP or secure access codes. I need something that has better biometric authentication, better device authentication, and then I need a solution that provides friction, not just on the outside, but also on the inside of the digital space. Digital banking at an institution that does not have extensive security solutions in place is gonna stagnate. You can't add... We, you know... The industry constantly comes out with new solutions. Digital issuance, for instance.

That's something that's very high risk based. You allow that, but you make it. easy for a fraudster to get in, now they're gonna have access to d- their debit cards. So if you're not taking those steps, you need to start considering taking those steps, because a year from now, you know, it's gonna be... There's so many risk-based solutions, you are gonna be not just low-hanging fruit, but, you know, y- people are gonna pass along messages, you are gonna be a target and you're gonna see increased attacks, you know, whether they're credential stuffing, whether they're social engineering. So get ahead of the curve, because you don't want to have to answer to your members when you're not.