Financial Crime World

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Detecting Financial Crime in Réunion: A Growing Concern

In today’s digital age, financial crime is becoming increasingly sophisticated and widespread. Credit unions in Réunion must be vigilant and prepared to detect and prevent fraud to protect their members’ interests.

As credit unions in Réunion continue to adopt digital strategies, they should be aware of the following trends:

Digital Acceleration

  • The shift to online channels has led to a change in the types of fraud we see. Credit unions must be prepared to address this new landscape.

First-Party Fraud is On the Rise

  • With mule activity increasing by 10% or more, credit unions must be able to identify and segregate legitimate from illegitimate transactions.

Continual Uptick in Synthetic Identity Fraud

  • As cybercriminals become more sophisticated, credit unions must stay ahead of the curve to prevent synthetic identity fraud.

The Fight Against Fraud: Four Key Tips

To detect financial crime effectively, credit unions should:

Manage Each Fraud Type Appropriately

  • Use a multi-level solution that includes new methods for authenticating current and prospective members, as well as incorporating synthetic identity services and identity proofing throughout the member lifecycle.

Be Resourceful

  • Leverage current resources and use what’s readily available to allow for a binary decision tree. For example, if suspicious of a dormant account, call or email the account holder to verify their identity.

Empower Members Through Education

  • Require the use of strong passwords, step-up authentication, and empower members with alerts, notifications, and card controls.
  • Provide resources like trainings, webinars, and best practices articles to educate members on current cyber trends.

Trust Data

  • Rely on scores and specific data to drive actions, rather than relying solely on employee decisions. This allows for a more transparent and actionable approach.

Protecting Your Members’ Interests

To mitigate and prevent financial crime in Réunion, credit unions must stay vigilant and adapt to the ever-evolving landscape of cybercrime. By following these four key tips, you can protect your members’ interests and ensure the integrity of your institution.