Fraud prevention starts before the transaction

October is Cybersecurity Awareness Month and we’re committed to helping financial institutions strengthen cybersecurity and build more secure, resilient digital banking experiences. Throughout the month, we’ll be sharing insights, resources and perspectives to support the ongoing work of staying ahead of evolving threats.

For financial institutions, digital banking solutions should help teams see unusual activity earlier, understand what is happening, and act before a preventable loss becomes a member or customer conversation.

That shift, from reactive response to proactive protection, is already happening at financial institutions using AppGate with Alkami.

What does proactive fraud prevention look like?

Proactive banking fraud prevention gives financial institution teams more time to act. Instead of waiting for an account holder to report a loss, teams can use real-time signals to investigate activity and reach out sooner.

Before implementing AppGate with Alkami, Whitefish Credit Union did not have a real-time fraud solution. Alicia Softich, vice president of digital services, explains:

“Before our implementation of AppGate, we were actually seeing probably about 10% to 15% of every alert coming over resulting in preventable fraud loss.”

That lack of real-time visibility kept the team in a reactive position. After implementation, Whitefish could block some activity before losses occurred and work with the AppGate team to create risk rules that fit its membership.

This changed how the team worked and the kind of conversations they were able to have. Alicia describes being able to call account holders and explain that a loss had been prevented.

That kind of response helps protect account balances, supports member trust, and reduces the reputational risk that comes with preventable fraud losses.

How does visibility change the fraud response?

InTouch Credit Union had fraud tools and risk mitigation tools before implementing AppGate with Alkami. But Chris Oglesbee, vice president of retail operations, says the credit union did not have a detailed fraud strategy. Its approach was broad, making it difficult to pinpoint what was happening.

AppGate gave the team more visibility into member activity across the digital banking platform. Chris explains:

“You could actually see the behaviors of your members, what they’re doing, and how they’re using the digital banking platform.”

That visibility helped employees recognize suspicious patterns and respond faster. It also changed how the team experienced fraud work. Instead of only investigating losses after the fact, employees could see suspicious activity as it happened.

Chris describes that change this way:

“We’re not reactive anymore. We’re making a proactive approach, contacting the member quickly. We’re making a good impression.”

Effective banking fraud prevention should help employees understand the activity behind fraud threats. Better context can support faster decisions, clearer account holder conversations, and less time spent sorting through unnecessary alerts.

Where can fraud signals appear before a transaction?

Fraud warning signs can surface at many points in the account holder journey, including failed login attempts, unusual account maintenance, activity targeting a financial institution, fake websites, suspicious payments, or behavior that does not match normal patterns.

Dee Millard, technical account manager at AppGate, puts it plainly:

“The fraudsters will find the weakest link. It’s not if it’s going to happen. It’s when it’s going to happen.”

AppGate looks beyond the transaction itself. Dee shares one example:

“A lot of times we’re taking down phishing sites before our customers even know that it’s out there.”

That broader view helps teams look for risk before money moves. It also supports a more connected response across the digital banking experience.

Depending on a financial institution’s needs, AppGate 360 Brand Guardian can help identify phishing sites, fake applications, and impersonation threats. AppGate 360 Risk Control can help analyze transaction activity and identify behavior that may signal fraud after login.

These capabilities support a broader fraud prevention approach, which connects meaningful signals to the right action.

What should financial institutions ask next?

Cybersecurity Awareness Month is a useful time to look at where a fraud response is still reactive.

Ask:

• Where do we see risk first?
• What happens after an alert is created?
• Can our team reach an account holder before a loss occurs?
• Do our tools work together across the digital banking experience?
• Are we reducing unnecessary friction while still identifying meaningful risk?

Fraud prevention is ongoing, but the next step does not have to be complicated. Start by identifying where signals are disconnected, where employees lack context, and where earlier action could protect account holders.

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