We will keep you updated on strategies to manage COVID-19/coronavirus while also regularly informing you about our business continuity efforts. To that end, we have made available a microsite with all COVID-19 information, including client communications, our business continuity plan, resources and FAQs. Visit http://www.co-opfs.org/COVID19 at any time for the latest updates.
Thank you for being a valued client. As your partner, we want to lift the cooperative spirit of credit unions to support you and your members. We are here for you!
CO-OP is here to support you.
3 General Cybersecurity Best Practices:
As more and more transactions move to online, mobile, and ecommerce over the coming months, credit unions must ensure a seamless level of security for card-not-present (CNP) transactions. If you haven’t yet, we recommend credit unions begin tokenizing their credit and debit transactions. Tokenization simultaneously protects the member, ensures a seamless purchase experience, and manages the potential dispute rights around CNP transactions.
CO-OP is in the process of implementing Version 2 of 3D Secure (3DS) across our entire credit/debit portfolio, in accordance with Visa and MasterCard mandates. Version 2 will use risk-based authentication based on the information available at the time of transaction – from the merchant and the issuer – and no longer requires a username and password. Cardholders are therefore automatically enrolled into 3DS version 2.
At the same time, all transactions conducted through our mobile wallet solutions - Google Pay, Apple Pay, and Samsung Pay - are all tokenized. Therefore members should be encouraged to use them whenever possible.
Review Travel Indicators on Accounts
With more consumers cancelling their travel plans, encourage members to notify you of changes in their itinerary. This will allow for any travel indicators that were previously noted on the account to be removed. When travel indicators are placed on an account, they are managed under less-restrictive fraud rules. By removing a travel indicator, the member has the appropriate fraud monitoring in place for their activity.
CO-OP Payment Defender
In addition to more closely monitoring fraud at the transaction level, CO-OP Full Service Credit clients can leverage CO-OP Payment Defender to help minimize payment fraud losses. Payment Defender allows a credit union to identify cardholders who are most likely to have the next payment returned and allows for management of potential risk associated with that cardholder. The payment float feature ensures that a cardholder’s available credit is not increased when a payment is made until a certain number of float days have passed. Payment Defender allows the credit union to create specific actions to take based on various risk and fraud criteria of the cardholder and/or their payment history (ex. payment frequency and size relative to a card holder’s balance and/or credit limit). The number of float days and float amounts are customizable based on relative potential risk.
Remind Members to Use Fraud Alerts
Remind members to actively monitor their accounts for unusual activity. One easy way for members to identify suspicious activity is to sign up for, check, and respond to fraud text alerts sent by CO-OP either by phone, text or email.
CardNav users can also set up custom alerts and restrictions for specific transaction types and dollar amounts within the app.
Monitor Member Spending Habits and Make Adjustments
Be sure to leverage all of the business intelligence and reporting tools available to you from CO-OP, your core processor, and your brand network partners (Visa/MC) to identify unusual spending patterns that may indicate fraud. Work directly with CO-OP’s team of experienced Fraud Analysts Consultants and/or your core processor to review and monitor your fraud strategies.
As a reminder, all 9.7 million member accounts on the CO-OP Shared Branch Network are also monitored by our fraud solution COOPER Fraud Analyzer.
Additionally, there are a number of things you can do at your credit union to help mitigate the risk of fraud throughout COVID-19:
Review and Adjust Transaction Limits
Consider working with your core processor to review and adjust transaction limits at the cardholder-level as needed.
For credit unions that offer CardNav by CO-OP, members can set transaction limits on their credit or debit cards from the convenience of their phones.
Remind employees not to open, click or share any emails from unknown sources and to report them to your Information Security Team.
The Department of Justice (DOJ), World Health Organization (WHO), and FBI have all issued warnings about the rise in COVID-19-related fraud schemes that are exploiting unsuspecting victims across the country (learn more about “3 Common COVID-19 Fraud Schemes”).
And as more payments shift to digital and mobile channels in the wake of state-level shutdowns, the potential for not only fraud but also transaction disputes will place an increased burden on your credit union and members.
Remind members not to give out their personal or financial information via call, text or email and to only access COVID-19 information from official government-sponsored websites.
Stay informed. CO-OP hosts a monthly discussion on fraud called “FraudBuzz” where our panel of experts share the latest fraud-related news and best practices for protecting members. (Learn more and register)