The top three fraud concerns for credit unions and other financial institutions are card-not-present debit and credit card fraud, skimming at ATM machines and POS terminals, and retailers’ data breaches, according to a new white paper from FIS and Card Services for Credit Unions.
CSCU is the association of credit unions which process their card transactions on FIS' platform.
“With more and more consumers becoming comfortable with online purchases, fraudsters’ focus on perpetrating CNP fraud has been rising in tandem” the white paper for CSCU members noted.
“While larger online merchants have standard fraud checks in place (e.g., address verification, card security verification, and credit card authentication), not all online merchants have such security measures implemented, leaving the onus of fraud prevention/detection on issuers,” the paper said.
The paper also took note of the increasing sophistication of so-called skimming schemes which physically tamper with an ATM or POS terminal in order to capture cardholder data.
“Credit unions need to make sure their ATMs are secure and are encouraged to regularly check their ATMs, carefully checking for anything that may look abnormal or out of the ordinary,” the paper urged. “In addition, it is important that credit unions ensure that the video camera is in working order and has a good view of the machine, and that they educate members by emphasizing the importance of protecting PIN numbers.”