AuditLink, the audit and compliance division of CU*Answers, announced new native fraud detection functionality in the most recent release of CU*BASE®, the CUSO’s flagship core data processing platform. Jim Vilker, VP of Professional Services and leader of the AuditLink division, indicated that sets this apart from third-party standalone systems requiring an exchange and translation of data is that the data being use and analyzed is native to the core and vastly larger and more reliable than third-party software systems. “Data governance is a real problem with third-party systems and lack of knowledge of the data and how it is being analyzed is quickly becoming one where financial institutions are being required to have third parties validate the translation at significant costs,” he added.
The new functionality is configurable by individual credit unions and there is no limit to the fraud and money laundering detection patterns credit unions can configure across a vast amount of member information. Because AuditLink currently reviews suspicious activity for over 100 credit unions and has done this work for the past 13 years, the division pioneered the development of the new functionality. Vilker went on to say that the AuditLink financial intelligence unit are fraud detection practitioners and used its collective experience to build the analytics behind this new functionality. The new functionality gives CU*Answers clients a much quicker response to activity that could cause losses as it is being analyzed daily. “This puts our credit unions in a position of preventing losses vs. reporting that the loss occurred.”
The new abnormal activity monitoring and fraud detection functionality went live for all credit unions in late May and because it is part of the core CU*BASE application it came with no additional cost.