PSCU, Pindrop partnership thwarts $1M in fraud in 1st month
PSCU is stepping up its fraud prevention efforts, using Pindrop technology on behalf of its owner credit unions to provide an added layer of voice security and caller authentication, according to a press release.
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.
Pindrop Phoneprinting technology analyzes calls to identify malicious behavior. 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 a voice over internet protocol, which accounts for 53 percent of fraudulent calls.
PSCU began testing Pindrop technology in Q4 of 2017. Within the first month, the technology helped to identify more than 300 confirmed fraud situations. Once Once the situation was detected PSCU was able to proactively block the attempted fraud and move quickly to protect accounts.
Given an average credit limit of $3,000 to $4,000, this equates to an estimated $1 million in savings within the first month, the release said.
"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," Jack Lynch, senior vice president and chief risk officer at PSCU, said in the release. "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's Owner credit unions already experience below card industry average fraud. 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."