Fraud Education Arkansas Federal Credit Union Becky Higgs Arkansas Tech University February 28, 2017

Background Arkansas Federal Credit Union is the largest Credit Union in the State of Arkansas Originated in 1956 as The Little Rock Air Force Base Federal Credit Union Serves over 90,000 members worldwide Full Service financial institution

Credit Cards Issued: 23, 401 Debit Cards Issued: 58,447

Problem Identified: What does this mean? With over 80,000 plastic cards issued, there is a high risk of fraud occurrence for our members. Our members process transactions in stores, over the phone, at ATM’s and online. My job at AFCU is ensure that the fraud process for our members is as quick and painless as possible.

My job at AFCU Payment Solutions Specialist Fraud Analyst * Receive Fraud Disputes * File with VISA * Issue Provisional Credit to Members

Disputes Debit Fraud Credit Fraud Non-Fraud Transactions performed with a debit card including ATM withdrawals. Transactions performed with a Credit Card Includes transactions for services, ordered products or transactions performed in error.

Payment Solutions Receives 40-50 disputes per month Members have 60 days to dispute a transaction from statement date. Average monthly charge off amount for 2016 was $71,198 Facts about Disputes

Main Goal: Educate Frontline Staff Purpose of the Project The purpose of this project is to streamline the process of disputing a transaction at AFCU Main Goal: Educate Frontline Staff

Why? We feel that our frontline staff does not have the proper knowledge, training or experience when it comes to handling member disputes. This has become a problem when the member does not understand the process. What do our Frontlines currently do? Verify the activity in question Remove the unauthorized charges Close the plastic card that the transaction occurred on Fill out the fraud form and forward to Payment Solutions

Research Two Methods of Research Survey Interviews

Survey Questions Questions Asked: 1. Please indicate which type of dispute you would like more training in. 2. How confident are you in explaining the dispute process to a member? 3. Which type of dispute do you see the most of? 4. Do you agree with the dispute process at AFCU? 5. What type of resource would help you best? 6. Would you be interested in shadowing Payment Solutions? 7. Which Method of training would you learn best from? 8. Please give your honest view on AFCU’s dispute process. 9. Please list any additional comments that you would like to give regarding the dispute process.

Results

Open Response #1 Please give your honest feedback about AFCU’s dispute process. I did not receive any negative comments in this section. The main focus was that more communication needed to be had regarding the status of the dispute. Some had nothing but positive things to say while others mainly gave advice or pointers. Final Answer: Communication

Open Response #2 What type of resources would help you best? Most answers were all over the board for this question. I saw comments regarding the difference between fraud and non-fraud which was a popular answer listed above. There were several that stated they would like additional information such as a reference to a quick guide, FAQ’s and interview questions to ask the member. Training on the dispute form Most common answer: hands on training. This is of no surprise since the majority of the surveyors said they would like a shadowing opportunity.

Open Response #3 Please provide any additional information regarding disputes? This section was used to somewhat brag on the Payment Solutions department so this was an easy read for me and my stakeholder. The main takeaway that I had from this section was again, training on the dispute form and better communication.

Plan of Action

Subsidiary Group 16 employees 1 from each of the 14 Service Centers 2 from the Contact Center This subsidiary group will be comprised of front line employees who will serve as representatives from Payment Solutions to their Service Center.

Training Program 15 Week Training Program 2 days for each member spent with the Fraud Analyst Shadowing Opportunity

Areas Covered Fraud Form List of Questions Visual & Hands On An extensive overview of the fraud form. This list will be used as a tool to help front line staff ask appropriate questions to the member during a fraud conversation Opportunity to see first hand, the process of the Fraud Analyst and have an opportunity to process disputes.

Take home Materials PowerPoint Presentation List of Questions Examples This will help aid the group member when training their service center. Questions to utilize when helping a member with fraud Real life scenarios

Considerations Facility & Equipment Travel Materials Cost

Benefits of the Training Program A stronger report between Payment Solutions and Front Line Staff Build confidence with front line employees regarding disputes Alleviation of headache and confusion between staff and members

How Soon? Start planning now Once the core conversion is complete, shadow opportunities may begin