19 THE NAFCU JOURNAL January–February 2023 information,” she said. In most cases, people don’t choose to pay for ongoing monitoring after the free period has expired, so they are vulnerable. “Credit unions must use artificial intelligence (AI) tools to monitor for complex fraud such as synthetic identity theft, but it is not always effective against theft following data breaches,” said English. “Because the breach provided all of the information typically used in questions used to test the identity of the person, the fraudsters have the answers.” There is no one-size-fits-all technology solution for credit unions, but automated monitoring provides a foundation for the most success—if standards are constantly reviewed and revised to reflect changing trends in fraud. “An automated monitoring program is not something you can set and forget,” said Painter. “The goalposts to mitigate fraud are constantly moving, so you must continually revise standards.” “ Most identity theft fraud is a result of a data breach, but criminals know that organizations provide one year of monitoring to victims of the breach, so they sit on the information. ” LYNN ENGLISH, SENIOR VICE PRESIDENT OF RISK MANAGEMENT, LAFAYETTE FEDERAL CREDIT UNION Although technology is a critical component of a fraud monitoring program, don’t forget to address the human element, recommended Painter. “We offer education to members on fraud, but we usually end up counseling them after the fact,” she said. Successful fraudsters present their scams as urgent and immediate because they don’t want their victims to think about what is being asked of them, so the best advice for members is the “five-second rule.” By telling members to take five seconds to think about the request and consider if it makes sense to them, people can protect themselves, she said. In addition to educating members and staff on how to identify potential scams or identity theft, make sure you have the right number of people monitoring fraud in your organization, said English. “Unfortunately, the compliance and fraud department is often viewed as a cost center, which means it is the last
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