TAMPA--Velera Thursday announced the release of its Consumer-Engaged Fraud Case Management Playbook.
Designed to help credit unions navigate complex consumer-engaged fraud cases, the resource provides a practical framework for investigating claims, making informed filing decisions and reducing chargeback risk, Velera said.
"Consumer-engaged fraud (CEF) has become a growing source of losses for financial institutions and merchants, with more than two-thirds of financial institutions reporting an increase in CEF and 35% experiencing more than 1,000 fraud attempts annually, according to Alloy. Unlike traditional third-party fraud, CEF can involve legitimate cardholders who are either manipulated into fraudulent activity or intentionally misuse their accounts, requiring a more nuanced approach to investigating claims," the CUSO explained.
Velera previously developed its Consumer-Engaged Fraud Classification Guide to help credit unions identify and categorize key types of CEF, including misuse, persuaded and the newly identified collusive merchant fraud sub-classification. The new playbook builds on that work by moving from classification to case management, giving credit unions a consistent approach to investigating claims, evaluating evidence and determining when and how to file.
Key components of the playbook include:
- Case management guidance: A step-by-step case flow and core investigation elements to support consistent decision-making.
- Filing best practices: Guidance on when to file a case, when not to file and how to reduce chargeback risk while maintaining network compliance.
- Real-world examples: Case studies covering different types of CEF to help teams apply the framework to common scenarios.
- Tools and resources: A case management checklist and other resources designed to support fraud, risk and dispute teams in their day-to-day work.
“As consumer-engaged fraud continues to evolve, credit unions can't rely on the same signals and assumptions they use to evaluate traditional fraud,” said Velera Managing Vice President of Risk Operations Nicole Reyes. “An authorized transaction doesn't necessarily mean the member acted knowingly, and a disputed transaction doesn't necessarily mean the member was a victim. This is where context becomes critical. Credit unions need to understand what happened around the transaction, not just what happened during it, so they can protect members, manage losses and make decisions they can stand behind.”
To learn more and download the playbook, visit velera.com/insights/consumer-engaged-fraud-case-management-playbook