When Branding Goes Right.

Posted by Tony

August 6, 2007

Last week, people in Tennessee received a funny phone call around dinner time. It was an automated message informing them that there was a problem with their Tennessee Valley Federal Credit Union account and that it has been frozen until a confirmation phone call has been made.

We all know that phishing has become an almost regular part of credit union business. Weekly we hear about emails to members requesting personal information. Now, they are calling the members.

Now I have to admit that a few years ago I got caught and almost gave my social security number out over the phone to a solicitor. What could make me do it? It was 5am and I was half asleep. The caller apologized and said that they were calling from the IRS main office in Utah about my recent incorporation filings for one of my businesses. They needed to complete a form that was omitted in my initial filings. They asked me to spell my name. They then said to “confirm my identity” they were going to read back my phone number. Thats what woke me up. What kind of stupid confirmation process is that? Obviously they had my number because they called it. I ended up asking too many questions and they hung up. I was safe, but they ALMOST caught me. I would have been just another statistic.

So, what can you do to fight this scourge? I know this will sound contrived but the fact is - branding will protect your members. How can I make this statement? Wow, you are full of questions!

See, this latest phishing scam targeted about 80,000 people in the Chattanooga metro area who are members of the Tennessee Valley Federal Credit Union. But thier members were not fooled.

Bob Townsend, a member of Tennessee Valley Federal Credit Union, said “I knew it was a scam.”

The automated female voice says “Hello, this is an official notification from the Tennessee Valley Federal Credit Union, informing you that your payments and transfer services have expired.”

“TCFCU would not be calling me at 7:13, I have no automatic bill pay, my transfer priveleges aren’t going to be suspended,” Townsend said.

This man knows his credit union and what they stand for - and what they will not do to their members.

So not only are the members pretty smart, but the management team over at TCFCU were on the spot and responsive.

Blake Strickland, President and CEO of Tennessee Valley Federal Credit Union said to reporters, “no financial institution or legitimate business for that matter will ever contact a consumer, or in our case a member, asking for that information.”

Strickland said that so far about a half-dozen people have fallen for the scam and have given out their account information.

“If any of our members should fall victim to this scam and provide personal information we would just ask that they contact us immediately, we’ll take protective measures to close down the account,” according to TVFCU Vice President of Marketing John Merritt.

Merritt added he didn’t know of anyone who lost money.

Lynn Smith, Vice President of Information Technology, said “we have traced this out to the midwest through some top-tier communications providers and down about three levels into a local area. We have a good idea where it’s coming from.”

The credit union is working with Chattanooga Police and the F.B.I. to catch the scammers.

Out of 80,000 members, only 6 called the number back. That is about .0075% of the membership even questioned that their credit union would freeze their account or act in this way if there was a question about their account. The other 79,994 members trusted their credit union to act properly.

How many of your members would have made the call?