There are two numbers that every credit union and member should know:
4 billion
40 billion
Those are the two costs of fraud every year. It’s $4b in consumer identity protection products (such as LifeLock). It’s a whopping $40b for institutions to cover that fraud—and that doesn’t include any spend for cybersecurity.
These numbers are BIG, and they show just why digital identity authentication and protection are necessary in 2022 and beyond.
In this Fintech Friday, we’ll look at how Cozera’s id-go tackles these issues and prevents Account Takeover (ATO) fraud.
Member Confidence and Experience
Money isn’t the only factor in this discussion, nor should it be. The member experience is also critical. Consider these:
- Faster, more convenient authentication
- Security peace of mind
- Fewer headaches from passwords and challenge questions
More and more people are adopting digital and remote banking services—and they demand a more frictionless experience that is still highly secure.
The old ways of doing things are too cumbersome for convenience-driven digital natives. For example, requiring branch visits to open accounts loses you members. Offering subpar digital banking frustrates your members. Increasing member risk of fraud erodes their confidence.
Fortunately, you can reduce the risk of fraud and provide a better member experience at the same time.
Improving Digital Identity Security
Reducing fraud at credit unions means more than increasing cybersecurity measures. ATO attacks are the most common sources of financial fraud. ATO works so well because cybercriminals simply use their victim’s account information to access accounts and more.
The first way to reduce ATO fraud is to provide ultra-secure identity authentication. If members have a nearly-unhackable identity authentication, they can provide credentials that hackers couldn’t.
Digital ID, such as that provided by Cozera’s id-go, does more than reduce individual fraud. In fact, it also ensures that institutions need to store less personally identifiable information (PII), making them less of a target for fraudsters.
Something like this would reduce that $4b number in the cost of consumer fraud.
And that would cascade into a significant reduction in that $40b cost to institutions.
How Cozera’s id-go solves Digital Identity Authentication
Credit unions require authentication to access accounts or handle other financial needs (including getting anything done with the call center). That means memorization, challenge questions, and other hoops to jump through.
It also means sharing PII over networks… but that’s something that Very Good Security can handle.
But ATO attacks occur because traditional authentication processes are inadequate. Cozera’s id-go means credit unions can know their members, instantly—no passwords, no questions. id-go sends a notification to the user’s phone to be validated with a biometric (thumbprint, facial ID, etc.).
To further reduce risk, id-go doesn’t store biometrics, users control consent, and the whole system is aligned with CCPA and GDPR requirements.
Part of our interest in id-go is its track record. Rivermark Community Credit Union used id-go to cut member authentication time from 104 seconds to 20. Unitus Community Credit Union saw similar results, with a huge improvement in call center workflow, thanks to its IVR integrations. Pioneer FCU reduced their average call time substantially as well.
The other thing that we liked about Cozera’s id-go is its deployment time. It can be deployed in hours, thanks to it’s no-code (or low-code) nature.
Ultimately, Cozera’s id-go offers ease of use, convenience, and a bulwark against account takeovers that lead to those $4b and $40b in fraud losses per year. Other digital identity authentication services may yield similar results, but id-go’s rapid adoption by multiple credit unions of varying sizes adds a layer of social proof that we love.
Additional Resources
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