Velera Launches Next-Generation Fraud Prevention System for Credit Unions

Velera has launched its next-generation system designed to protect credit unions and their members from fraud.

The new Risk Mitigation Ecosystem features a cloud-based, multilayered approach and is designed to combat new and emerging threats, including consumer-engaged (or first-party) fraud and scams, the credit union service organization and integrated financial technology solutions provider said in a Tuesday (Oct. 7) press release emailed to PYMNTS.

Velera’s Risk Mitigation Ecosystem leverages datasets across various consumer touchpoints to build a holistic view of credit union member behavior, applies artificial intelligence (AI) models to this data, and then identifies unusual patterns and anomalies to detect and prevent fraud, according to the release.

In addition to technology and data integration, the system incorporates dedicated risk consultants, delivering a fully integrated fraud defense, per the release.

Karen Postma, senior vice president of risk solutions at Velera, said in the release that this solution targets newer forms of financial crime, such as fraudsters’ use of social engineering and technology to manipulate consumers.

“Our Risk Mitigation Ecosystem addresses this head-on by providing a dynamic, adaptable defense system,” Postma said. “We’re moving beyond a reactive approach to one that can predict and prevent fraud before it impacts our clients and their members.”

The tactics of fraudsters have continued to evolve alongside technological innovations like generative AI, Postma told PYMNTS in an interview posted in October 2023.

“Everyone has an equal ability to deploy technology, no matter who they are,” Postma said at the time.

For example, Postma said, fraudsters can use generative AI to mimic a voice within seconds, use these recordings to impersonate individuals, and deceive even the most cautious of consumers.

Jeremiah Lotz, senior vice president, enterprise data and experience design at Velera, told PYMNTS in an interview posted in August that both historical and real-time data play roles in fraud prevention.

“We want to use real-time data and real-time transactions to be able to understand what’s happening in that moment for that consumer,” Lotz said. “But we also want to look back at ‘retro’ data to spot trends.”

This combination allows AI models to inform immediate actions based on learned intelligence, optimizing responses in real-time fraud scenarios, Lotz said.