12.04.25

A Credit Union’s 5-Point Anti-Fraud Strategy Pays Off

by: Chris Palumbo

Citadel Credit Union has reported significant declines in fraud losses after restructuring its fraud program around advanced analytics, trained frontline staff and formal law enforcement collaboration. Over the past 15 months, the credit union reduced card fraud losses by 42%, cut non-card charge-offs by 72% and lowered average non-card fraud losses by 62% as machine-learning tools flagged suspicious activity earlier and employees escalated risks in real time. The effort comes as fraud pressure increases across the industry, with a 2025 Alloy study finding that 70% of financial institutions are experiencing major fraud growth and wider use of AI-driven schemes. Citadel says combining data-driven detection with stronger identity verification, staff escalation playbooks and direct partnerships with local and federal authorities has helped prevent account-opening fraud and speed restitution for impacted members.

Read the full article on The Financial Brand