Since the beginning of commerce, financial fraud has been a prevalent challenge for businesses and the banking sector alike. Over the years, as banks strengthened their cyber defenses to prevent fraud and protect their consumers’ assets, criminals also ‘upped their game’ and started targeting vulnerable banking systems. Today, the prime banking facet that fraudsters target is the credit/debit card, owing to the ease with which they can obtain unsuspecting individual’s banking credentials. Conventionally, financial fraud is committed one of two ways: stealing credit card numbers and/or criminally acquiring account information. In the latter case, criminals go even beyond financial information and steal personal and social data as a way to open more fraudulent accounts. However, regardless of the fraud, the government has mandated that the card-issuing financial institution and/or credit union cover the losses of their customer. As a result, banks and credit unions are seeking partners that will enable them in preventing instances of fraud across their card processing infrastructure.

Enter Member Access Processing (MAP), a Washington headquartered payments company that combines its extensive credit union partner network with its customized, turn-key card processing solutions to help its clients in identifying vulnerabilities and preventing card fraud. “We offer our tech-driven tools to enable the detection of fraudulent card transactions while continually working to find newer and more effective avenues to prevent cardholders from being targeted,” says Karl Kaluza, Chief Marketing Officer at MAP. The company also has a very close relationship with card processing giant, Visa, which allows the company to utilize data from millions of Visa cardholders to predict and prevent fraud.

The company leverages a multi-layered approach to prevent fraudulent activities. Firstly, MAP utilizes its highly sophisticated card processing portfolio to ensure that fraudsters cannot open a fraudulent account. To achieve this feat, the company’s tools identify the customer (cardholder) during the process of account opening, which is followed by a periodic verification of the customer’s identity to eliminate instances of fraud. Alternatively, if a cardholder misplaces or has their card stolen, MAP provides multiple products, namely its Falcon Fraud Manager and Visa Account Authorization that leverage AI to identify purchasing behavior and spend patterns. “Our tools allow us to detect instances where a cardholder is making a purchase that does not align with their recorded purchasing behavior, notify them of the same, and ensure that fraudulent activities do not occur,” explains Kaluza. The company also has a similar product—ManagedReal-Time—that continually records a cardholder’s purchasing behavior and creates a score that can be utilized in case of fraud.

Apart from these solutions, the company also offers a Risk Services Manager (RSM) tool that enables its clients to set unlimited rules with respect to card usage that can be segmented down to the individual cardholder level. For example, the company allows its customers to block/accept/decline transactions from untrusted merchants and send marked transactions to Falcon for real-time decision-making.

We offer our tech-driven tools to enable the detection of fraudulent card transactions while continually working to find newer and more effective avenues to prevent cardholders from being targeted

With RSM, MAP’s clients can set precise rules, allowing them to better serve their members while maintaining security for their card portfolios. More recently, MAP developed its Fraud Forecaster solution which uses AI, ML, and Big Data to assess millions of cardholders’ data to identify suspicious or fraudulent businesses and sends daily reports that highlight such merchants, thereby proactively preventing chances of fraud.

With respect to its partnership with Visa, Kaluza elaborates, “Visa performs a quarterly benchmark where they assess our cardholders’ portfolios against other financial institutions and our portfolios run at a range of about 37 percent lower fraud rate than all of our contemporaries.” And MAP achieves this by working closely with its clients and understanding their prevalent challenges to develop an effective strategy to prevent fraud and identify revenue opportunities. In pursuit of this, the company has periodic conferences with its clients where they notify them of the latest market trends and in-house developments, before providing solutions that best-suit their specific need.

Highlighting the impacts of MAP’s portfolio is a client success story where the company helped a large credit union in California to reduce their debit card fraud. In this instance, the client was utilizing another vendor for their POS debit transactions and they had pinless authorizations set at $200. Subsequently, owing to the low security of pinless debit transfers, the client began receiving a significant number of fraudulent charges. When the customer approached MAP, the company deployed its comprehensive portfolio and immediately pinpointed the problem to be their $200 limit on pinless transactions. Following this, MAP advised a decrease in the limit for pinless transactions (from $200 to $25) while continuing to eliminate all other instances of fraud, which resulted in a noteworthy fall in the number of fraudulent and high ticket volume charges.

Presently, MAP’s mission is to aid its clients in providing all of their banking services to the end-customer in a seamless and secure manner. As a result, the company has now started offering training tools that helps its clients better utilize their portfolio and educate them on preventative measures against fraud. Moving forward, the company aims to continue this trend and work towards expanding the capabilities of its portfolio to provide the best possible experience for their clients. “We will continue providing the tools and strategies that will help our customers improve their fraud detection services while helping them make smart financial decisions,” concludes Kaluza.