By Robert Jarosinski
As payment methods evolve, new risks and challenges continue to emerge. In fact, today, less than 50 percent of breaches are known. Debit card compromises at ATMs are up 546 percent year-over-year. And, 91 percent of the losses our customers report are card-present counterfeit.
With so many unknowns surrounding payments, your confidence may falter when you think about expanding the payment capabilities of your business. So, what can credit unions do to overcome these challenges? Here are five considerations.
- Understand the fraud landscape. Understanding the current landscape is necessary prior to expanding capabilities. Know what’s happening with breaches, card compromises, fraud and more.
- Layer key elements of protection. A one-size-fits-all solution for preventing fraud doesn’t exist today. So, fight from every angle using fraud management services, EMV, card-not-present tools and mobile wallet offerings.
- Embrace EMV. Despite EMV’s slow implementation, we already see staggering drops in counterfeit fraud, with EMV-based merchants reporting a 35 percent decline.
- Select the right mobile wallet. Today, you can choose from more than 150 mobile wallet options, including Apple Pay, Samsung Pay, PayPal and more. So, selecting the right solution can be tricky. Look for these three key elements when evaluating mobile wallets: tokenization, encryption and strong authentication options.
- Know how you benchmark against other credit unions. Defining the “new norm” in today’s landscape is difficult since a credit union loss barometer for the industry doesn’t exist (yet).
To help address these challenges, we’re conducting a Credit Union Benchmark Survey to help credit unions understand their metrics and year-over-year fraud performance compared with their peers. So far, results show debit card fraud dollars are up 27 percent, year-over-year, and credit card fraud dollars are up 15 percent.
We invite you to participate in our survey and stay tuned for our results, which will be released in August exclusively to Bond policyholders who participated in the survey.
Looking for more payment insights? Log into our Protection Resource Center* to watch our latest webinar, titled “Expanding Payment Capabilities with Confidence,” featuring Andy Sun, Senior Product Analyst – Visa Chip Product, VISA and myself, Robert Jarosinski, Risk Management Senior Consultant, CUNA Mutual Group.
Also, keep an eye out for more risk management insights on our blog, or tune into our Credit Union Protection webinars, provided exclusively to our Bond policyholders.
*Bond policyholders only