Protect your credit union with advanced technology and zero-trust security

SPONSORED — Fraudsters and cybercriminals are rapidly evolving their tactics, exploiting new technologies and stolen data at an alarming rate. With tools like generative AI, deepfakes, and vast amounts of breached personally identifiable information (PII), fraudsters are developing sophisticated schemes that challenge the defenses of even the most progressive credit unions. 

To combat this, you must adopt adaptable fraud management strategies that evolve alongside these new threats.

Legacy Systems Are No Match for New Threats

One of the most significant challenges facing credit unions today is the reliance on legacy systems. 

Older platforms, while once effective, now struggle to keep pace with new, more sophisticated forms of fraud. Modern scams – like those involving synthetic identities, where fraudsters create fake identities using stolen PII – often slip through the cracks of legacy systems. Similarly, fraud schemes involving money mule accounts (funds are funneled through a network of unsuspecting or complicit individuals) can be difficult to detect with outdated technology.

In today’s rapidly changing fraud landscape, relying on legacy systems can leave your credit union vulnerable to attack, resulting in increased fraud losses and reputational damage.

The Importance of Identity Verification Technologies

To address these vulnerabilities, you must invest in advanced technology – specifically, solutions focused on identity verification. 

One particularly effective tool is behavioral biometrics. This technology analyzes unique digital behaviors like typing speed, mouse movements, and navigation patterns to identify anomalies that could indicate fraudulent activity. Unlike traditional forms of authentication which can be mimicked or stolen, behavioral biometrics are nearly impossible for fraudsters to recreate.

By integrating advanced identity verification technologies into your fraud prevention strategies, your credit union will be better equipped to detect unusual activity early and stop fraudulent transactions before they occur. 

Zero-Trust Security: A Modern Necessity

In addition to using advanced identity verification, adopting a zero-trust security framework is critical for defending against modern fraud. Traditional security measures like usernames and passwords are increasingly vulnerable to cyberattacks, as fraudsters find ways to exploit weak points in these systems.

A zero-trust model, however, operates on the principle of “never trust, always verify.” It assumes that no user or device should be trusted by default, even if they’re inside the network perimeter.
Implementing a zero-trust architecture ensures that access is tightly controlled, since employees and systems are granted only the minimum level of access required to perform their duties. This least-privilege access approach reduces the risk of a breach by limiting how much damage a fraudster could do if they gained access to your system.

It’s also crucial to keep your systems updated and continuously improve your security infrastructure, as fraudsters frequently target outdated security measures to gain access to sensitive information. This means regularly updating software, patching vulnerabilities, and implementing multi-layered defenses that can address both legacy and modern fraud tactics.

Keeping Your Credit Union Secure

Fraud is an old, familiar foe that has long challenged credit unions, but today’s evolving threats demand modern, advanced technology and innovative strategies to effectively combat it.

Learn more about next-generation fraud solutions that can help you protect your credit union ‒ and your members ‒ from being vulnerable to financial crimes and fraud.