Velera Arms Credit Unions Against Consumer-Engaged Fraud

Credit union service organization Velera has introduced a new resource to assist credit unions in managing intricate consumer-engaged fraud cases, according to a press release issued on August 20. The "Consumer-Engaged Fraud Case Management Playbook" provides a structured approach to investigating claims, making informed filing decisions, and mitigating chargeback risks.

It includes guidance on case management, best practices for filing, real-world examples, and tools such as a case management checklist. Consumer-engaged fraud is an increasing source of financial losses for institutions and merchants, as it can involve legitimate cardholders who are manipulated or misuse their accounts. Velera's playbook expands on their "Consumer-Engaged Fraud Classification Guide," which was released in April to help credit unions identify and categorize types of consumer-engaged fraud.

Velera's Managing Vice President of Risk Operations, Nicole Reyes, emphasized that credit unions must consider context beyond transaction details when evaluating these cases, as authorized transactions do not always indicate the member's knowledge and disputed transactions do not always mean the member was a victim.