Preventing Fraud in the Shared Branch Network

February 7, 2024 | ,

Synergent logo(From Synergent) – As the state network representative of the Shared BranchSM network to credit unions in Maine, Synergent is sharing important Shared Branch tips to assist your credit union with fraud prevention. 

Preventing Fraud by Placing Warning Codes 

Within the Shared Branch network, credit unions have the ability to place warning codes on member accounts, preventing known bad actors or members of credit unions who are not signed up for Shared Branching from taking advantage of the network.  

To do this, you would locate your core warning code assigned to the function of restricting member access. Then, this would be attached to the member’s record at the account level. Any attempts to access the network would be denied automatically. If desired, an expiration date can be entered for the warning.  

“Credit unions shouldn’t solely rely on having a warning code set to prevent fraudulent activity,” said Rebekah Higgins, Vice President of Payments for Synergent. “Account access should be restricted or totally blocked if the circumstance warrants that. This includes considerations for new accounts; limiting or not allowing access for a period, for example.” 

For credit unions who receive Shared Branch services through Synergent, Synergent can customize Warning Codes to meet specific needs. 

“Warning codes are defined at the credit union level,” explained Pat Mileski, Product Analyst for Synergent and the Maine State Network Representative for the Shared Branch network. “At Synergent, we can add functionality to warning codes. Typically, these warning codes are named ‘Restrict Shared Branch Access.’” 

Other Ways to Prevent Fraud in Shared Branching 

Synergent’s partners at Co-Op prepared some best practices for preventing fraud in the Shared Branch network. These tips include: 

  • Maintain accurate fraud contact information. To update contact information, email clientcare@coop.org. 
  • Register for fraud alerts from the Co-Op Shared Branch website at https://fraudalerts.co-opsb.net/Default.aspx.  
  • Review the alerts, even if not in your geographic area, to stay aware of the fraud tactics being used with Shared Branch. 
  • Leverage Co-Op Cooper® Fraud Analyzer Reports (FARs) daily. Follow up with a member the same day a FAR is generated to review suspected fraudulent activity. Respond to reports within three business days of receiving a FAR by contacting accountfrauddetection@coop.org or phone: 1-888-821-6323. 
  • Report suspected fraud immediately.  

Other best practices for issuing credit unions: 

  • Restrict high balance accounts with little or no shared branching activity 
  • Remove resumes and/or documents from social media or professional websites that indicate member affiliation to their credit union  
  • Strengthen call center security questions 
  • Revisit check and cash withdrawal limits to minimize exposure  
  • Consider offering an opt-in/opt-out policy for employees, board members, and members to participate in shared branching, and make sure they are informed of the potential risks involved  
  • Flag or restrict accounts that have not used shared branching to identify 
  • Utilize check and cash withdrawal limits set on the core 

Other best practices for acquiring credit unions: 

  • Pull a two-day history prior to completing a withdrawal to review for suspicious activity  
  • Black light IDs  
  • Check the ID against the “ID Check Guide”  
  • If there is any question or suspicion, get a second approval from a supervisor or manager  
  • Use additional security measures/questions or involve a supervisor when a guest member has an out-of-state driver’s license, from an out-of-state credit union, and is requesting a large check or cash withdraw 

What Is Shared Branching? 

Through the Shared Branch network, credit unions across the country “share” their participating branches with each other. Members of a participating credit union can use any other participating credit union’s branch to complete a variety of transactions, including:   

  • Loan payments  
  • Cashier’s checks  
  • Deposits  
  • Withdrawals  
  • Transfers  
  • Account inquiries   

Shared Branching provides many benefits to credit unions and their members, including:  

  • Physical branch access   
  • Ability to complete transactions not available through digital channels  
  • Collaboration with fellow credit unions—a reflection of the cooperative credit union movement  
  • Membership retention  
  • Service continuity during temporary branch closures, outages, or natural disasters  
  • Access to online locator services   

Questions? 

For Maine credit unions who access Shared Branching through Synergent, please contact customerservice@synergentcorp.com, or submit a case in My Synergent. For credit unions who access Shared Branch services through a core provider other than Synergent, please confirm all core recommendations with your core provider.