Proactively Mitigating Fraud Losses with Appgate Detect TA & Alkami

Arkansas Federal Credit Union (AFCU) is a member-owned financial cooperative based in Little Rock, Arkansas. With membership open to all Arkansans, AFCU invests in the communities where their members live, work and play. The credit union has a membership of more than 150,000 with over $2.3 in assets and 21 branch locations throughout the state.

In October 2021, Arkansas Federal Credit Union (AFCU) embraced innovation by launching on Alkami’s digital banking platform for both business and retail. Drawn by Alkami’s unwavering commitment to superior support and groundbreaking fraud prevention, AFCU seamlessly integrated AppGate’s Detect TA solution. This strategic move fortified AFCU’s defenses against sophisticated fraud attacks, marking a pivotal shift from manual monitoring to an automated, real-time, behavioral-driven fraud detection strategy. Detect TA not only alleviated the workload associated with manual monitoring but also significantly enhanced AFCU’s overall fraud prevention efforts.

Preventing Member-to-Member Fraud with Appgate Detect TA

AFCU faced a substantial challenge over Veterans Day weekend, experiencing coordinated member-to-member fraud attacks that led to financial losses exceeding $80,000.

Member-to-Member Fraud Scenario

Fraudster opens new account
Fraudster impersonates AFCU customer service to obtain account information from members
Fraudster initiates member-to-member transfer

Traditional security measures proved inadequate against these coordinated attacks, prompting AFCU to adopt a proactive approach to safeguard both its members and financial assets. In response, AFCU undertook strategic initiatives to enhance its defenses, minimize potential losses, and fortify overall fraud prevention efforts. The implementation of user and institutional account rules played a pivotal role in strengthening the credit union’s fraud prevention measures.

“Appgate and their security experts are passionately working with financial institutions to solve their fraud problems by creating rules that help mitigate losses.”

Chandra Boyd, Fraud Manager, Arkansas Federal Credit Union

A member-to-member transfer rule was strategically enforced during weekends and holidays to counteract coordinated attacks. Despite initial concerns about potential impacts on user experience, the rule proved effective and impacted only a small fraction of users. Continuous collaboration with Appgate security experts led to the refinement of existing rules and the introduction of new ones tailored to address specific fraud patterns and events leading to potential losses. Notably, the credit union extended the duration of certain configurations, such as ACH with outgoing and incoming external transfers, to thirty days. This adjustment proactively thwarted fraud attempts that had previously gone unnoticed within shorter configuration durations.

Since the implementation of these initiatives, AFCU has witnessed substantial successes. The member-to-member transfer rule alone has resulted in cost savings of nearly two hundred thousand dollars ($200,000) in potential losses.

The adoption of Appgate Detect TA has significantly reduced the need for labor-intensive manual monitoring, allowing AFCU’s team to focus on strategic enhancements. Regular collaboration with Appgate ensures ongoing adaptability to emerging fraud patterns, providing a robust defense against evolving threats.

In conclusion, through a combination of strategic rule configurations and the adoption of advanced fraud detection tools, AFCU has significantly fortified its defenses against fraud to proactively mitigate losses for its members. The credit union remains committed to the ongoing improvement of its security and fraud approach, with a proactive stance to address future challenges and ensure the continued security of its members and the institution as a whole. With Alkami’s extensive partner ecosystem, AFCU is able to stay ahead of the competition and deliver best-in-class digital banking solutions to their members.

About Alkami

Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables

clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and business banking, digital account opening, payment security, and data analytics and marketing solutions. To learn more, visit www.alkami.com.