DENVER — Michigan State University Federal Credit Union is streamlining authentication at its call center and ultimately reducing fraud losses with the help of AI. 

Prior to the addition of an AI authentication solution, the $8 billion credit union’s call center agents were taking three to five minutes to verify a member, creating frustration, Jamie Smathers, vice president of fraud prevention at MSUFCU, said March 3 at the FinAi Banking Summit. 

Bad actors sometimes call the center with member information, looking to gain access to an account or perform a transaction, she said, so verification is a necessary step. 

However, member frustration pushed call center agents to rush calls after verification, eliminating the opportunity to cross-sell or enhance member experiences with additional products or services, Smathers said. 

Now, the AI in place built with Pindrop Security creates authentication scores based on device, behavior and voice, Smathers said. Based on the score — coded as green, yellow, red or gray — call center agents know how to handle a call from a verification standpoint. 

With the technology, “we’ve actually been able to protect over $2.5 million in just a year from bad actors calling,” she said.   

MSUFCU’s Jamie Smathers discusses existing fraud threats at FinAi Banking Summit

Deepfake solution

In January, East Lansing, MI.-based credit union added another scoring model to its AI solution to catch deepfakes, Smathers said. Deepfakes are AI generated videos or calls that can be used to impersonate an individual. 

“We’re very hopeful that [the deepfake scoring model] will be able to detect synthetics for us,” she said. 

The deepfake fighting solution, called “Pulse,” can recognize a synthetic voice, flagging callers that are not actually human, she said. 

“It’s early days of deployment, but the tool spots 20 synthetic callers on average a month,” Smathers said. “It gives our call center reps more confidence and they are able to get to the servicing of clients quicker.” 

MSUFCU tapped AI solutions provider Pindrop Security for the deepfake spotting solution, she said, adding that all front-line employees have access to the tool.

While the credit union is monitoring and innovating around emerging threats, traditional fraud still plays a role, she said. “All of the old fraud schemes are still in play.”

Read more coverage from FinAi Banking Summit here.