Credit unions experience various types of fraud involving applications, transactions and account takeovers. In fact, nearly 40% of Americans have been identity theft victims, leading to fraudulent applications at financial institutions. Resulting losses are often disguised as normal credit losses.

Nevertheless, fraud costs for financial services and lending institutions are up 10% since 2020. Many legacy fraud solutions are dated, segmented, slow, and cost prohibitive for credit unions to implement. DataVisor provides an integrated, comprehensive fraud platform with real-time prevention and detection that can save credit unions time and money.

“With increased adoption of real-time transactions, the necessity to respond to fraud threats with speed, agility, and better technology is imperative for credit unions to minimize fraud losses and deliver impeccable service to their members,” said Yinglian Xie, CEO of DataVisor. “We want to help credit unions deploy a modern fraud solution that delivers high return on investment and quickly detects and combats sophisticated fraudsters in a more cost-effective way.”

Powered by transformative AI and machine-learning capabilities, DataVisor enables proactive fraud detection in real time, with a 40-90% increase in detection versus traditional services. CMFG Ventures’ investment highlights an opportunity for credit unions to deploy more modern and innovative solutions to combat fraud.

NASA Federal Credit Union launched DataVisor’s platform in 2021. “We partnered with DataVisor to enrich our fraud-fighting capabilities with a scalable infrastructure,” said Doug Nahas, chief operating officer, NASA FCU. “They have exceeded our expectations and proven to be one of our most innovative partners. DataVisor’s team understands our business needs and are experts at extracting, categorizing, and modeling data. This has allowed us to replace a series of previous vendor fraud solutions with improved models and significant cost savings.”

CMFG Ventures sees the investment in DataVisor as a way to help more credit unions mature their fraud prevention strategies. “The shift toward digitization and real-time payments has amplified the need for credit unions to prioritize fraud solutions that are proactive and real-time,” said Mike Kraus, principal at CMFG Ventures. “This is evidenced by the National Credit Union Administration making fraud prevention and detection one of its supervisory priorities in 2023. We’re thrilled to invest in DataVisor, which offers innovative and leading technology that can help our credit union partners stay ahead of emerging threats.”