Strengthening Member Trust and Security with Proactive Fraud Prevention

A credit union founded in the late 1930s has steadily grown from a small community-based operation into a modern financial provider serving more than 100,000 members. With a history of delivering full-service banking—including mortgages, credit cards, auto loans, and investment products—this credit union has continuously evolved to meet changing member needs through both physical branches and digital platforms.

In recent years, the credit union has placed strong emphasis on digital service enhancements and risk mitigation, especially as cyber threats have grown more targeted and sophisticated. A key enabler of this evolution has been its partnership with Alkami, which has supported the credit union’s growth with advanced digital banking solutions and access to a curated network of third-party providers through the Alkami Partner Program.

By tapping into this program, the credit union implemented a layered fraud prevention strategy in early 2024 using BioCatch for behavioral analytics and Appgate for advanced transaction monitoring. This strategic collaboration helped the credit union respond to increasing fraud threats, improve internal operations, and maintain a high level of member trust—especially among younger, digitally native users.

Recognizing the Gaps in Traditional Fraud Tools

Before adopting new security solutions, the credit union relied on traditional tools such as digital banking reports and manual fraud alert reviews. While useful for investigation, these tools lacked the proactive capabilities needed to intercept fraud before losses occurred.

In 2023, account takeover attempts were a primary concern. The credit union reported over $600,000 in related losses stemming from tactics like phishing, social engineering, and online scams (e.g., romance, imposter, and social media fraud). Fraudsters frequently bypassed manual review processes, exposing the institution to repeat losses and creating operational strain.

Deploying BioCatch and Appgate Through the Alkami Partner Program

In early 2024, the credit union launched a layered fraud prevention approach by implementing two solutions:

• BioCatch: Uses behavioral biometrics to identify unusual patterns that signal account takeover attempts, including deviations in typing cadence, navigation, and interaction timing.
• Appgate: Delivers detailed fraud alerts and supports the creation of custom rules to flag suspicious account behavior, especially involving peer-to-peer transactions and wire transfers.

Staff training was a key component of the rollout. Frontline and fraud teams were equipped to interpret behavioral indicators, respond to alerts, and communicate with members when accounts were flagged—even in cases where no loss occurred. This proactive mindset improved internal expertise and resilience against evolving fraud schemes.

Reducing Fraud Losses and Shifting Team Focus

By mid-2024, the credit union saw meaningful reductions in fraud-related losses and improvements in operational efficiency.

• Account takeover losses dropped by $211,000 compared to the previous year.
• In June 2024, BioCatch generated 84 alerts, with 74% confirmed as fraud, allowing staff to intervene before funds were lost.
• Staff were able to shift focus from claims processing to real-time intervention, reviewing and freezing suspicious accounts based on activity rather than after-the-fact reports.

Member Trust and Forward-Looking Security Plans

Members responded positively to the credit union’s security improvements. When notified that an attempted fraud was prevented, members expressed appreciation for the proactive communication and support. In these cases, staff also shared useful resources to help members take further action, such as filing reports or securing personal devices.

Looking ahead, the credit union plans to continue refining its fraud detection rules and leveraging insight from both Appgate and BioCatch. As these systems continue to adapt to new threats, the credit union anticipates continued reductions in fraud and greater operational confidence.

Positioned to Stay Ahead of Digital Threats

This credit union’s experience illustrates the value of proactive fraud prevention made possible by layered detection tools and responsive partnerships. Through its collaboration with Alkami, and by integrating solutions from BioCatch and Appgate, the credit union significantly reduced fraud losses, improved internal workflows, and enhanced the member experience.