‘Tis the season for holiday shopping. Members shopping on sitesthey’re unfamiliar with, payment and loan offers in abundance,heightened volumes of card-not-present transactions, statementsthat are longer than any other time of the year … these are a fewof fraudsters’ favorite things.

According to the National Retail Federation, more than 174million Americans shopped online and in stores from ThanksgivingDay through Cyber Monday this year, significantly surpassing thepredicted estimates of 164 million shoppers. While this spendingmight be good for the economy, upticks in volumes also attractcriminals and fraudsters.

Over the past several years, fraudulent activity has skyrocketedaround the holidays, and that trend is only expected to continue.Between stolen or counterfeit cards and fake websites, faulty giftcards and automated bot attacks, consumers have a lot to watch outfor, especially when shopping online. Given the increasingpopularity of online shopping – more than 58 million people shoppedsolely online from Thanksgiving through Cyber Monday this year,outnumbering the 51 million who shopped exclusively in stores –this is especially concerning.

As trusted advisors to members, credit unions should identifyand share ways to boost member protection. Helping members avoidand respond to fraud strengthens overall member relationships.Credit unions can take measures to better safeguard members andtheir sensitive information through member education, robustinternal security best practices and proper vendor duediligence.

Engage Members How They Want to be Reached

Potential fraud scenarios likely aren’t top of mind for theaverage member as he or she is battling the holiday rush. Becausecredit unions are more deeply versed on fraud and defensivestrategies, they should push reminders and relevant information totheir members, including tips and best practices for avoiding fraudscenarios and how to properly respond if something does goawry.

There are several tactics credit unions can deploy toeffectively reach a wide variety of members. If a credit union hasa regular digital or physical newsletter, for example, that’s asolid avenue to share information about fraud threats and ways tocombat them. Same goes for a credit union’s website – this is agreat vehicle for sharing information, as it’s something manymembers will access on a regular basis, especially during a busyshopping season.

Social media also provides a strong opportunity to disseminateinformation, one that credit unions don’t always fully maximize.Social media has gained immense popularity as a preferred method ofconnecting with brands and gathering news and information for alldemographics, especially for younger generations. A survey by TheNational Retail Federation found that 24% of younger generationsare planning to spend more money holiday shopping this year thanlast year, which indicates that they’ll likely also be morevulnerable this season. This susceptibility makes active engagementvia Facebook, Twitter and Instagram, especially important to reachthis particular audience. Remember, the fraudsters are using thesechannels to reach your members, too. Incorporating visuals orgraphics is an effective way to increase engagement across allplatforms.

To specifically target Generation Z, credit unions shouldconsider leveraging video. According to a recent study by AdWeek,95% of Generation Z regularly uses YouTube. A sharable videoexplaining tips and tricks for staying secure this holiday seasoncould really resonate with this group.

And, don’t forget the branch. Even though branch traffic hasgenerally been declining in recent years, the branch is still asignificant point of interaction for many members. Trainingemployees to proactively speak about fraud best practices andprominently displaying pertinent signage and literature can helpreach members with a personal touch.

Fortify Internal Security & Properly Vet VendorPartnerships

While it may sound obvious, another way to make sure creditunions are doing everything they can to protect members is to takea close internal look at institutions’ own security practices andprotocols. In the age of proliferating cyberattacks, it’s likelythat credit unions themselves will be the target of hackers at somepoint, and they must ensure members’ sensitive information is wellprotected with strong firewalls and appropriate data storage.

This also extends to evaluating security levels of a creditunion’s vendor partners. Credit unions must practice due diligencewhen teaming up with technology providers that will house members’data. Not all vendors are created equal, so credit unions must holdthemselves accountable for thoroughly vetting each potentialpartner and validating their security controls, certifications andprocedures before making a decision. An increasing number of creditunions are even leveraging third parties to help determine securityand risk scores for their technology providers to ensure members’data remains in the most secure hands. If something happens andinformation is compromised because of a vendor, members willultimately blame the credit union and not the non-member facingpartner, damaging member relationships and the credit union’sreputation.

By deploying targeted member awareness campaigns, practicingsound internal security and conducting proper due diligence withvendors, credit unions can better safeguard members’ sensitiveinformation and funds. Credit unions have an advantage this holidayseason because of their strong member relationships and commitmentsto service. Engaging members about what’s being done to protectthem and what they can do to protect themselves builds a sense ofconfidence and trust that may lead to an opportunity for creditunions to gain wallet share, or even become the defaultcard-on-file more often. The greatest gift a credit union can giveis the sense of security; its returns can outlast most of the toysunder the tree.

Scott Johnston is EVP/COO of Member Driven Technologies.He can be reached at [email protected].