1. Fraud Threats Are Escalating
SARs are up almost 7% YoY for Credit Unions. (Figure 1)
Just as quickly as new technologies are modernizing the financial landscape, hackers are finding new and seemingly infinite ways to leverage them in fraud schemes. Without a strong fraud prevention strategy, credit unions risk becoming easy targets.
2. Fraud Exploits Gaps in Legacy Systems
>50% of credit unions run on legacy systems. (Figure 2)
Legacy systems often lack modern cybersecurity capabilities, making it easier for fraudulent activities to slip through the cracks. Adopting cloud-based technologies as part of a comprehensive fraud prevention strategy can help close the gaps in your security perimeter.
3. Financial Losses Hurt Members and Mission
In 2024, 80% of credit unions lost >$500k to fraud. (Figure 3)
Fraud is a drain on resources smaller financial institutions rely on to invest in their member community. Building a fraud prevention plan is the best way credit unions can protect their community and member focus.
4. Fraud Prevention Builds Trust Across Channels
32% of banking customers consider the presence of a robust fraud protection framework the most important factor in selecting a bank or financial institution. (Figure 4)
Member relationships are built on trust. As seamless access to mobile banking becomes an industry standard, members need to know their experience is protected wherever they engage. With a strong identity-based fraud prevention strategy, your members become the perimeter of your secure digital environment.
5. Compliance Is Non-Negotiable
1/3 of credit unions rank regulatory compliance among their top three concerns for 2024. (Figure 5)
Data breaches, loss of member trust, and financial damages associated with fraud and regulatory penalties are just three of many consequences credit unions face when they fail to maintain regulatory compliance standards. A proactive fraud prevention strategy ensures institutions meet evolving cybersecurity standards and positions them as leaders in responsible banking.
