AI-powered fraud prevention tools are gaining momentum among credit unions as card-not-present attacks and account-takeover attempts grow more sophisticated. Vendors now offer behavior-based scoring, anomaly detection, and real-time decisioning — capabilities previously accessible only to large banks.
Credit unions are adopting these tools to reduce manual reviews, catch high-velocity fraud patterns, and minimize false declines. Analysts say the shift reflects a broader financial-services trend: fraudsters increasingly use automation and AI themselves, forcing institutions to update their defenses.
Early adopters report improvements in accuracy and fewer member complaints about blocked transactions, though results vary by vendor and implementation.