Filene Research Highlights New Insights on Fraud in Credit Unions
New research from Filene Research Institute shows that credit unions can dramatically reduce fraud dispute costs while improving efficiency and member experience by adopting the right technology.
On April 22, Filene released findings from its innovation testing program, FiLab, which conducted real-world pilots of two fintech solutions focused on fraud mitigation and authentication. The results, gathered from structured testing across ten credit unions, showed per-claim fraud dispute processing costs dropped by approximately 90%, write-offs decreased 72%, and one participating credit union saved an estimated $875,000 in its first year.
The findings come as fraud continues to escalate nationwide. In 2024, U.S. consumers lost $12.5 billion to fraud, a 25% increase from the previous year. For credit unions, the operational challenge is compounded by member expectations. Sixty-six percent of members say they would consider switching financial institutions after a poor fraud dispute experience.
One of the FiLab pilots examined Casap, a platform that automates the fraud dispute process from intake through resolution while maintaining Regulation E and Regulation Z compliance. Five credit unions participated in the test, including one that had been live on the platform for more than a year.
Staff reported significant improvements over prior systems, including a 122% increase in ease of use and a 63% reduction in error frequency. Overall staff satisfaction averaged 4.8 out of 5, with 93% of participants saying the platform made their job easier.
At Chartway Credit Union, full deployment of Casap delivered the most striking results. The time required to post provisional credit dropped from roughly 20 minutes to nearly instantaneous. The credit union saw per-claim processing costs fall by about 90%, write-offs decline 72%, and chargeback win rates improve by 95%, resulting in an estimated $875,000 in savings in the first year.
FiLab also tested IDgo, a device-based authentication solution designed to replace traditional knowledge-based verification questions during call center interactions. Instead of verbally sharing personal information, members authenticate using their phone’s built-in security after receiving a secure link from the agent.
The IDgo pilot included five credit unions and a 650-member live deployment. Among participants, 82% of members said the process was faster than traditional authentication methods, and 81% of call center agents agreed. Agents also reported strong confidence in the security benefits, with 85% saying they believed the tool would reduce fraud risk. Overall satisfaction averaged 4.0 out of 5.
One of the more notable findings challenged assumptions about technology adoption among older members. Members age 65 and older rated the IDgo experience higher than any other age group, with an average satisfaction score of 4.1 out of 5. The results indicated that ease of use and thoughtful design matter more than age when introducing new digital tools.
FiLab conducts its pilots in live operational environments rather than controlled demonstrations, providing credit union leaders with data they can directly apply to their own operations. Both Casap and IDgo are currently available for broader adoption across the credit union system.
Filene has released full reports detailing the data, methodology, and implementation guidance from both pilots. Credit unions interested in learning more about the findings or participating in future innovation testing can access the research through Filene Research Institute.
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