PSCU, Pindrop block $1 million in fraud in one month

With the relentless onslaught of criminal attacks on payment networks and consumer and corporate data, it can seem that those fighting to prevent breaches, data theft and identity theft are fighting a losing battle. But good news arrived in the ongoing effort to stop fraudster from PSCU and Pindrop. Pindrop offers a proprietary platform that fights call center authentication fraud by providing an added layer of voice security and deeper caller authentication to its fraud detection process.

"PSCU began testing Pindrop technology in Q4 of 2017," the leading credit union service organization wrote in a press release dated Feb. 8, 2018. "Within the first month, more than 300 confirmed fraud situations were identified using the technology. PSCU was able to proactively block the attempted fraud and move quickly to protect the available credit of those accounts from potential fraud loss. With an average credit limit between $3,000 and $4,000, this equates to an estimated $1 million in savings in the first month, immediately confirming the immense value of the security solution."

Flexible, collaborative risk management

Jack Lynch, Senior Vice President, Chief Risk Officer at PSCU, stated, "We are committed to remaining a flexible and collaborative risk management partner, and we will continually fine-tune and add innovative tools to deliver industry-leading fraud prevention and data protection. Our addition of Pindrop technology is an essential step toward this goal, as we seek to fulfill our mission to enable growth and provide an unparalleled member experience."

PSCU went on to explain that call center fraud typically involves a fraudster assuming the identity of a cardholder. "The fraudster will then attempt to obtain cardholder information in order to do an account takeover, attempt to override a declined transaction, or attempt to put a travel notice on the account," PSCU said.

Patented technology at work

Pindrop's patented Phoneprinting technology was created to analyze calls to identify malicious behavior and verify legitimate members. "The technology analyzes nearly 1,380 unique characteristics of a call to create a detailed audio fingerprint, revealing the geographic location of the call origin and whether the call is coming from a landline, a cellphone or from VoIP ‒ the last of which accounts for 53 percent of fraudulent calls," PSCU stated.

Michael Hughes, Pindrop Vice President, Americas, pointed out that more than 61 percent of fraud starts with a phone call. "PSCU's Owner credit unions already experience below card industry average fraud," he noted. "With new strains of call center fraud emerging constantly, we will continue working closely with PSCU to implement Pindrop's technology to prevent unauthorized access to member accounts through the voice channel on behalf of Owner credit unions across the country."

Editor's Note:

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.