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Enhance Abnormal Activity Monitoring Tools to Add Cross Channel Patterns

Building on the project below where we added velocity, out-of the-ordinary and idle activity transaction patterns to help detect fraud, PS#61981 adds cross channel patterns to the Abnormal Activity Monitoring toolkit.  This new type of monitoring looks at transactions from multiple activity channels occurring in sequence.  These new patterns will be able to be viewed along with other transaction patterns via Tool #537 “Monitor Abnormal Activity Transaction Patterns”.   The following cross channel patterns are added:

• KITING – ATM deposits followed by teller withdrawal or check clearing
• MONEY MULE – ACH deposits followed by teller or wire transfer withdrawal
• CHECK WASHING – Large dollar check clearings close in sequence
• CARD TAKEOVER – Credit or debit card withdrawal with card not present indicator

Status as of June 2024: PS#61981 is currently waiting for an available QC tester. No target date at this time.

Enhance Abnormal Activity Monitoring Tools to Detect Fraud Patterns

Look for specific patterns that signal fraud.  We added a new configuration to the existing Abnormal Activity Monitoring toolkit, allowing CUs to configure settings that watch transactions for certain patterns, such as:

• Velocity – More than xx transactions, or a xxx% increase in transaction volume, over a specified # of days
• Out-of-the-ordinary – Transactions of more than $xx.xx, or a xx% increase in total transaction amounts, over a specified # of days
• Idle activity – Watch for a volume of transactions that occur after a period of xxx days of inactivity

The Abnormal Activity Monitoring Dashboard will analyze activity and provide a list of accounts that fit the pattern, allowing the CU to either add the member to one of the new Block Lists or take other appropriate action.  This dashboard approach will also allow CUs and our AuditLink experts to fine-tune the pattern configurations, in anticipation of future automated, interactive denial-of-service blocks.

Status: Implemented in the 21.05 release.

What’s Next?

Test against fraud patterns and stop incoming transactions before they post.  Build new routines to test activity against fraud pattern tests you’ve activated and automatically put accounts onto your block lists.

Status as of June 2024: Project #63138 is currently waiting for QC testing resources. This is the first in a series of “Stop-No-Go” Patterns.  Next up will be share draft processing and RDC which are also “batch” type postings that already have exception processing.

AuditLink Fraud Monitoring and Consulting Services

AuditLink experts can configure your CU*BASE Abnormal Activity Monitoring Patterns or Groups for a nominal charge or provide FREE consulting to credit unions who want to go it alone but need help getting started.  AuditLink also offers monthly services to review accounts the monthly groups generate.  You can visit our store to download a free PDF booklet to assist with configuring groups and patterns or contact AuditLink today!

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Chefs for these recipes:  AJ Schalk

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