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Fraud prevention solutions saved FI clients $40M in 2015, TMG says

April 26, 2016

Fraud detection and prevention strategies implemented by payments processor TMG saved the credit union service organization's clients more than $40 million in potential fraud losses in 2015, according to a company press release.

This savings represents an increase of more than 42 percent year-over-year from $28 million saved in 2014. The average return on investment experienced by clients enrolled in TMG's fraud prevention program was greater than 500 percent, the company said.

Some of the increase in total fraud savings can be attributed to growth in the TMG client base and in client portfolios. However, TMG Fraud Prevention Manager Ashley McAlpine said that an unprecedented number of merchant compromises was a factor, as well.

"A large number of data breaches took the industry by storm in 2015," McAlpine said. "More than 750 data breaches in the U.S. alone were identified, compromising the credit and debit accounts of consumers who transacted with popular merchants like Hilton Hotels, Hyatt Hotels, Walgreen's online photo stores and Wendy's."

McAlpine also said that calculations used to arrive at the $40 million figure were conservative, based only on a minimal amount saved.

TMG fraud detection and prevention technologies include fraud text alerts and Adaptive Control, a fraud-detection solution that monitors cardholder behavior over time, assigning custom, real-time strategies at the individual cardholder level.

The payments processor is also launching a series of customizable consumer controls that will allow credit and debit cardholders themselves to play a more active role in stopping fraud.