DES MOINES, Iowa (3/28/14)--Fraud detection and prevention strategies offered by The Members Group (TMG) saved its financial institution clients $20.3 million in potential fraud losses in 2013, the payments processor announced Thursday.
The $20.3 million figure represents a nearly 70% year-over-year increase from the $12 million TMG saved its clients in 2012.
Of the $20.3 million saved, an estimated $2.9 million was saved in December 2013 alone, due in large part to an increase in fraud resulting from Target, Neiman Marcus, Michaels and other merchant data breaches.
"Credit unions and community banks trust TMG to help them stay ahead of the fraudsters," said Karen Postma TMG's assistant vice president of operations. "We do this by putting to work the latest technologies that comprehensively monitor accounts, taking prompt, thorough action when fraud is detected and doing what is necessary to mitigate risk."
TMG's suite of fraud products and services includes several technologies used in concert with human analysis. Technologies include Fraud Text Alerts and Adaptive Control, a fraud detection solution that monitors cardholder behavior over time, assigning custom, real-time strategies on an individual cardholder level.
This type of strategy will become increasingly important as the country migrates to Europay-MasterCard-Visa standard and fraudsters shift away from counterfeiting in favor of account takeover, Postma notes.