Virginia Credit Union | How BAM+ Fraud Scenarios Saved Them Millions
The Challenge: Staying Ahead of Fraud
With advances in technology come advances in crime, making it easier for criminals to strike and harder for financial institutions to detect fraud. It is more important than ever for financial institutions to stay on top of the latest fraud trends to better protect their customers/members and their bottom line.
According to the AFP Payments Fraud and Control Survey, 78% of all financial institutions experienced some type of attempted and/or actual payments fraud in 2017. Even more concerning, the reputational damage caused by fraud loss far outweighs the financial losses, making it harder for an institution to recover.
Like many committed financial institutions, Virginia Credit Union is dedicated to stopping fraud and helping their members achieve their financial goals. In order to do this, they needed a persistent form of fraud detection and a system flexible enough to watch for various types of fraud.
“Often our members don’t even realize they’re being scammed,” Grant Garber, Virginia Credit Union’s Fraud and BSA Risk Manager said. “It is our job to prevent losses and identify suspicious activity on behalf of our members. We can’t do that effectively unless we’re able to see what’s happening across the entire institution.”
Even though Virginia Credit Union used fraud detection systems, they knew they could better safeguard their members’ money with a more robust, automated system that tracked all of their suspicious activity in one central place. Having an all-encompassing fraud case management system would give Garber and his staff a better picture of their fraud profile and help them stop fraudulent activity before it left their institution.
The Solution: BAM+ Fraud Scenarios
Prior to implementing BAM+ fraud scenarios, Virginia Credit Union was relying on a variety of systems to detect fraud. Garber knew they could find an integrated solution to better protect their members and turned to Abrigo for help.
Because they were already using BAM+ for BSA monitoring, the process of implementing the BAM+ fraud scenarios, was quick and easy. Similar to the BAM+ BSA/AML scenarios, the fraud scenarios combine institution-level risk thresholds and behavioral logic to identify individual and peer deviations with typology pattern detection, giving Virginia Credit Union the ability to adjust specific parameters to fit their individual needs.
After integrating the BAM+ fraud scenarios, the staff at Virginia Credit Union discovered suspicious activity that went previously undetected. They were able to use single-channel and multi-channel fraud detection tools unique to BAM+ to cut down on fraud, especially pertaining to wires. With single-channel detection tools, they were alerted to potentially fraudulent outgoing wires, ultimately strengthening their fraud program.
BAM+ also gives financial institutions the opportunity to scan for fraudulent wires in real time, stopping suspicious transactions before the funds leave the institution and providing better protection for their members and their bottom line. With wire fraud exponentially increasing over the last few years, it is more important than ever that financial institutions have a system in place to detect and stop suspicious activity in real time.
“The knowledge we’ve gained from fraud scenarios is invaluable,” Garber said. “They have illuminated things we might not have seen otherwise, providing coverage where we didn’t necessarily have it.”
The fraud investigation team also benefits from enterprise fraud case manager, giving them one location to track and record fraud detection across the entire institution. It also provides reporting for different types of fraud and allows Virginia Credit Union to manage fraud investigations, regardless of type or source. They can now aggregate and report fraud on an enterprise level providing a bird’s-eye view of what’s really happening.
“Enterprise fraud case manager allows us to track total dollar amounts lost on certain types of fraud so we can better allocate our resources,” Garber stated. “We are able to link certain cases together that may be related. That helps us mitigate fraud and come up with a response to it. Overall, it provided the framework in which to perform our investigations and remain compliant with regulations.”
The Result: Virginia Credit Union Saved Their Members Millions of Dollars
Since using Abrigo fraud scenarios, Virginia Credit Union has prevented over $1 million in fraudulent wires alone, including almost $300,000 in elder financial exploitation, saving their account owners’ money. Most of the fraud prevented were types that had previously gone undetected.
Staying informed on fraud risks not only better protects a financial institution’s members, but it also keeps regulators satisfied. BAM+ fraud scenarios can detect and prevent suspicious patterns that may seem normal including ACH fraud, check fraud and kiting, debit card fraud and wire fraud. That gives you a better read on your institution’s fraud risks and how to stop them, saving your members’ money and your institution’s reputation.