University FCU Catches Scams Early With New System
Reducing deposit fraud cases is an important goal at any credit union. At University Federal Credit Union, one incident in particular triggered the need for a new solution that would allow it to take a preventative approach against this common form of fraud.
The $1.6 billion, Austin, Texas-based credit union had placed a routine hold on a large check deposit from an account holder, and when the hold was lifted, the account holder initiated a wire for the same amount, explained Sandy Gaskamp, records management manager for University FCU.
Because of Regulation CC, which requires financial institutions to make certain deposit amounts available within specific time periods, the credit union still takes some small hits in check-related fraud cases. Still, its overall gains from the increase in early detection have been significant, Gaskamp pointed out.
University FCU hasn’t tracked exact loss reduction numbers since implementing DEPOSIT CHEK, but the service has helped prevent deposit fraud that can stem from several different scenarios, the credit union said.