Offering forward-thinking services like digital new account openings is a great way to improve your credit union's conversion rates, empower the user experience, and attract the attention of a younger and technologically savvy group of potential members--all at the exact same time.
However, that doesn't mean there aren't certain elements you have to concern yourself with--fraud being chief among them. To help reduce potential digital new account opening fraud as much as possible, there are a few key best practices you'll want to follow.
One effective way to combat digital account opening fraud is to require members to upload verification documents. While you want to maintain a fast and easy process, it's essential to include steps that confirm the identity of your applicants. Requesting documents like a driver's license or passport can help weed out fraudulent applications. Use document verification technology to authenticate these uploads quickly and accurately.
Consent-based Social Security number verification is another powerful tool in your fraud prevention arsenal. The Social Security Administration (SSA) is developing an electronic verification system that allows organizations like credit unions to accept electronic consent from members. This system will enable you to verify Social Security numbers in real-time, adding minimal friction for legitimate members while effectively preventing fraud.
Understanding how legitimate users behave during the digital account opening process can significantly enhance your fraud prevention efforts. By using machine learning and artificial intelligence tools, you can analyze behavioral patterns and create models of typical user behavior. When deviations from these patterns occur, your system can flag these anomalies for further investigation. This proactive approach allows you to address potential fraud in real-time, rather than reacting after the fact.
FLEX ID Scan technology enables credit unions to validate, extract data, and inspect documents conveniently from smartphones or tablets. This tool not only helps onboard members faster but also streamlines the onboarding process and reduces fraud.
By utilizing optical character recognition (OCR) and other advanced technologies, FLEX ID Scan ensures that the documents uploaded are genuine and unaltered.
By implementing these best practices and utilizing advanced tools like FLEX ID Scan, you can enhance your credit union’s security, protect your members, and maintain a seamless user experience.
To help you get started, FLEX demonstrates how this technology allows credit unions to validate, extract data and inspect documents conveniently from smartphones or tablets. It helps onboard members faster, streamlines the onboarding process, as well as helps reduce fraud. Click below to learn more!