Prevent Fraud by Assessing Past Experiences

ORLANDO, Fla. — One approach to preventing fraud is to build Falcon strategies based on previous fraud strategies.Lori Reiss, director of card services for BCU, told Card Analysis Solutions’ school attendees that BCU began to get better about how it handled fraud after its insurer, CUNA Mutual Group, prodded them that they were failing in fraud prevention.“When CUNA [Mutual] came to us and said that we needed to do fraud prevention better, that was a real wake up call for us, and we stood back and said, ‘OK, how are we going to do this differently? What can we do?’”One of the strategies BCU used was to examine all incidents of fraud of over $1,000 in losses and to ask how we can keep this from happening again, she explained. That approach gradually led the CU, working with Falcon, to design some fraud prevention parameters that have given the CU a very strong card fraud protection program, she explained.“What we do is write what we want Falcon to do in plain English, something any of us could understand, and then give it to PSCU to code into language for Falcon. They then test it, give us feedback for what we have said. Sometimes it comes back that the change we want to make would have prevented the fraud but also block 5,000 cards which is obviously not what we wanted to do so we have to go back and tweak that parameter to get it right.”–[email protected]