ST. PETERSBURG, Fla. — The ongoing and changing nature of fraud risk that credit unions face in their debit and credit card programs has brought a policy shift from PSCU Financial Services, the largest card services CUSO in the country. Previously the card CUSO, which serves over 500 credit unions that process their card accounts though First Data Corp., has taken a "decentralized" approach to fraud protection, according to PSCU CEO David Serlo. Under this approach, PSCU provided fraud prevention tools that each of its credit union member owners could deploy as it saw fit. Under the new approach Serlo described, PSCU will start and employ a new division in its structure to provide card fraud protection around the clock, 365 days a year.

The advantage of switching to a more centralized approach, Serlo said, is that a credit union that may not have the resources to mount this sort of round the clock fraud prevention will be able to keep its protection up even when it is closed.

PSCU has hired Steve Ruwe, a former executive with Visa USA who specialized in risk management to run the new division. Ruwe will start on Sept. 1 and will initially work primarily with PSCU's member credit unions, Serlo explained.