Organizations of all kinds know how challenging mitigating the risk of fraud can be. With the ever-expanding use of digital technology, the challenges have become greater and greater. That’s why these organizations can learn from the experiences of Ventura County Credit Union (VCCU).
Located in Southern California, VCCU has a clear mission: to look after the financial well-being of its members in the local community. Since 1950, it has been providing individuals and businesses with checking and savings accounts, mortgages, credit cards, business accounts, commercial loans, and other financial services. As a financial institution, it needs to be vigilant against all types of fraud, which can result in significant losses. And as a credit union, it is strongly committed to protecting its members from becoming victims of fraud themselves.
Implementing a robust fraud prevention program, however, comes with numerous daunting challenges. Fraudsters have become adept at using digital technology to evade the efforts of financial institutions to block their activities. VCCU, for instance, has struggled with identifying and stopping money mules—individuals who transfer illegally obtained funds on behalf of criminals. The credit union also has had to battle against the proliferation of synthetic identities, where fraudsters create fictitious identities to open accounts they can use for money laundering and other financial crimes.
VCCU knows that it needs access to accurate data to detect suspicious activities. Up until a couple of years ago, the credit union had been using a combination of technology solutions, search engines, and various county and state government websites. But it came to realize that the data it could access was limited, in part because the various data sources couldn’t “talk” to each other. That made it harder to identify patterns and networks that could signal potential fraud. These multifaceted and interconnected challenges highlighted the urgent need for a robust and comprehensive solution to enhance VCCU’s fraud detection and prevention capabilities.
Case study
How Ventura Country Credit Union prevented millions in fraud losses
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When Daniel Castro joined Ventura County Credit Union as Director of Fraud and Compliance in March 2022, he pushed for a better approach. At his previous employer, he had used Thomson Reuters Risk & Fraud Solutions, a digital toolbox that brings together several fraud prevention capabilities on a single platform. These tools include CLEAR, Thomson Reuters’ online investigative software that allows users to conduct efficient and accurate searches of a vast collection of public records. It also incorporates other Thomson Reuters risk assessment technologies, including:
- ID Confirm, which allows users to verify the identities of individuals and businesses through customizable risk criteria.
- Risk Inform, a risk scoring and risk assessment tool that identifies red flags such as synthetic identities, criminal records, and sanctions.
Using Thomson Reuters Risk & Fraud Solutions, VCCU has been able to obtain more and more reliable information. The platform’s speed in delivering this useful information has made the work of VCCU staffers much more efficient, allowing them to onboard members or approve loans with little or no delay. That makes for a happier membership base.
VCCU considers protecting its elderly members from financial exploitation a crucial part of its mission. In one case, the credit union was able to catch one instance of someone claiming to be a member’s caregiver (thus requiring access to that member’s financial resources) by running the suspect’s name through Thomson Reuters Risk & Fraud Solutions. The platform provided data that helped VCCU staff identify the perpetrator, who (it turned out) had a record of running such schemes.
During the two years VCCU has been using Thomson Reuters Risk & Fraud Solutions, the credit union has determined that it has prevented many millions in losses due to fraud. Castro notes that in one particular month, the credit union achieved between eight and 10 months’ worth of fraud prevention targets. Among other positive results, VCCU’s more effective fraud prevention efforts using Thomson Reuters fraud prevention technologies have reduced its insurance premiums.
Financial institutions and other organizations can gain useful insights from VCCU’s experience in mitigating the risk of losses due to fraudulent activity. Learn more by downloading the VCCU case study.
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