CO-OP Financial Services announced on Monday the deployment of a new anti-fraud tool – COOPER Fraud Score, a real-time payment fraud assessment tool focused on credit unions and the latest addition to the AI-based fraud mitigation platform COOPER, which COOPER -OP introduced in 2018.
CUSO, based in Rancho Cucamonga, Calif., Said the COOPER fraud score is designed to accurately detect more frauds, helping credit unions respond quickly to emerging trends and build member confidence in their cards. issued by credit unions. It works by creating a real-time risk score and applying it to a trade authorization request, then feeding the score to a range of decision-making tools within the CO fraud prevention ecosystem. -OP. If a transaction is identified as potentially fraudulent, the credit union receives “reason codes” that explain why the solution gave it the ratings it gave it; the credit union can then choose to relay this information to members, helping them understand why a particular transaction has been declined.
âThe beauty of real-time transaction data and machine learning technology is immediacy,â said Bruce Dragt, CO-OP chief product officer. âThe technology is delivering cost savings by reducing false positives, chargebacks and fraud losses. Equally important, however, is the increased confidence and reliability that members gain when they encounter fewer problems in the day-to-day movement of money. COOPER Fraud Score’s advanced anti-fraud technology helps strengthen the core financial relationships that credit unions work so hard to earn and maintain.
COOPER Fraud Score is platform-wide, which means it is integrated with CO-OP’s real-time decision tools for credit, signature / debit PIN transactions, and ATMs. In addition, it allows CO-OP fraud prevention consultants to define personalized strategies for credit unions, CO-OP said.
âThe integrated team of credit union-centric experts working alongside technology is a key differentiator of COOPER Fraud Score,â added Dragt. âThe CO-OP Fraud Enforcement team consists of data scientists, prevention consultants and detection analysts, all working to monitor the COOPER fraud score and enforce its use in anti-fraud strategies. fraud. By continually learning from the solution’s data feedback loop, as well as emerging fraud trends and use cases, the team has a strong focus on model results and effectiveness. Because they understand both credit unions and the risk of fraud, member experience is always a top priority.
The rollout of the new solution came at a time when the risk of payment fraud is high due to consumers’ continued preference for digital payments during the pandemic. According to a TransUnion study released last week, 19.66% of e-commerce transactions in the United States for the shopping period from Thanksgiving to Cyber ââMonday this year were suspected of being fraudulent. In 2018, 11.76% of e-commerce transactions in the United States were reported as fraudulent during this period, and the percentage has remained relatively stable over the past two years, with TransUnion saying it was 19. 94% in 2019 and 19.70% in 2020.
CO-OP noted that BIN (Bank Identification Number) attacks, which the COOPER fraud score corrects along with other vulnerabilities, have been a problem for card issuers during the pandemic. Last month, the $ 7.6 billion Redstone Federal Credit Union in Huntsville, Alabama was hit by a BIN attack.