Hyperledger Case Studies How CULedger protects credit unions against fraud with Hyperledger Indy

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	How CULedger protects credit unions against fraud with Hyperledger Indy Hyperledger

How CULedger protects credit unions against fraud with Hyperledger Indy

Hyperledger

Technology Category	Application Infrastructure & Middleware - Blockchain Cybersecurity & Privacy - Identity & Authentication Management
Applicable Industries	Finance & Insurance
Applicable Functions	Business Operation
Use Cases	Fraud Detection Regulatory Compliance Monitoring
Services	Software Design & Engineering Services System Integration
Challenge	Credit unions are increasingly being targeted by fraudsters, particularly through the call center channel. Traditional knowledge-based authentication questions have become vulnerable, leading to a rise in account takeover attacks. The process of member identity authentication across various touch points, including the call center, drive-up, and lobby, is fragmented and time-consuming, creating easy targets for fraudsters and causing frustration for consumers. The challenge was to find a more secure anti-fraud solution that could streamline the authentication process, reduce operational costs, and improve the member experience. Read More
About Customer	CULedger is a credit union service organization (CUSO) that was formed by a consortium of credit unions in 2016. The organization was created in response to the increasing threat of fraud, particularly in the call center channel. CULedger is committed to putting the needs and interests of their members first and foremost, and is concerned about the privacy of their members' personal identifiable information. The consortium launched a research-to-action project to find a more secure anti-fraud solution for its members, coincidentally around the same time the hype around blockchain and cryptocurrency was steadily increasing. Read More
Solution	CULedger implemented a decentralized identity solution leveraging Hyperledger Indy, a distributed ledger software project. This led to the creation of MemberPass, a digital identity credential held by credit union members that protects credit unions and their members from identity theft and fraud in all financial interactions. MemberPass offers a permanent and portable digital identity that reduces member friction and injects more trust in digital interactions within credit unions. The solution streamlines the initial member identity authentication process across various touch points, reducing the process from up to five minutes to 15 seconds or less. MemberPass also boasts a two-way encrypted communication capability, allowing members to verify the identity of credit union employees. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Blockchain

Cybersecurity & Privacy - Identity & Authentication Management

Applicable Industries

Finance & Insurance

Applicable Functions

Business Operation

Use Cases

Fraud Detection

Regulatory Compliance Monitoring

Services

Software Design & Engineering Services

System Integration

Challenge

Credit unions are increasingly being targeted by fraudsters, particularly through the call center channel. Traditional knowledge-based authentication questions have become vulnerable, leading to a rise in account takeover attacks. The process of member identity authentication across various touch points, including the call center, drive-up, and lobby, is fragmented and time-consuming, creating easy targets for fraudsters and causing frustration for consumers. The challenge was to find a more secure anti-fraud solution that could streamline the authentication process, reduce operational costs, and improve the member experience.

About Customer

CULedger is a credit union service organization (CUSO) that was formed by a consortium of credit unions in 2016. The organization was created in response to the increasing threat of fraud, particularly in the call center channel. CULedger is committed to putting the needs and interests of their members first and foremost, and is concerned about the privacy of their members' personal identifiable information. The consortium launched a research-to-action project to find a more secure anti-fraud solution for its members, coincidentally around the same time the hype around blockchain and cryptocurrency was steadily increasing.

Solution

CULedger implemented a decentralized identity solution leveraging Hyperledger Indy, a distributed ledger software project. This led to the creation of MemberPass, a digital identity credential held by credit union members that protects credit unions and their members from identity theft and fraud in all financial interactions. MemberPass offers a permanent and portable digital identity that reduces member friction and injects more trust in digital interactions within credit unions. The solution streamlines the initial member identity authentication process across various touch points, reducing the process from up to five minutes to 15 seconds or less. MemberPass also boasts a two-way encrypted communication capability, allowing members to verify the identity of credit union employees.

Impact #1	MemberPass was launched as a permanent, portable digital identity for credit union members.
Impact #2	The call center authentication process was reduced from 5 minutes to 15 seconds or less.
Impact #3	The solution improved call center metrics and operational costs, and removed friction from the member experience.

Impact #1

MemberPass was launched as a permanent, portable digital identity for credit union members.

Impact #2

The call center authentication process was reduced from 5 minutes to 15 seconds or less.

Impact #3

The solution improved call center metrics and operational costs, and removed friction from the member experience.

Benefit #1	Credit union’s annual fraud expenses in the call center channel will be reduced by an estimated $150,000 per year.

Benefit #1

Credit union’s annual fraud expenses in the call center channel will be reduced by an estimated $150,000 per year.

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Overview

How CULedger protects credit unions against fraud with Hyperledger Indy

Operational Impact

Quantitative Benefit