The top three fraud concerns for credit unions and otherfinancial institutions are card-not-present debit and credit cardfraud, skimming at ATM machines and POS terminals, and retailers’data breaches, according to a new white paper from FIS and CardServices for Credit Unions.

CSCU is the association of credit unions which process theircard transactions on FIS' platform.

“With more and more consumers becoming comfortable with onlinepurchases, fraudsters’ focus on perpetrating CNP fraud has beenrising in tandem” the white paper forCSCU members noted.

“While larger online merchants have standard fraud checks inplace (e.g., address verification, card security verification, andcredit card authentication), not all online merchants have suchsecurity measures implemented, leaving the onus of fraudprevention/detection on issuers,” the paper said.

The paper also took note of the increasing sophistication ofso-called skimming schemes which physically tamper with an ATMor POS terminal in order to capture cardholder data.

“Credit unions need to make sure their ATMs are secure and areencouraged to regularly check their ATMs, carefully checking foranything that may look abnormal or out of the ordinary,” the paperurged. “In addition, it is important that credit unions ensure thatthe video camera is in working order and has a good view of themachine, and that they educate members by emphasizing theimportance of protecting PIN numbers.”