2 Keys to Facing Future Fraud

The people of the United States faced many problems over the past year due to the pandemic, but the rise in fraud quickly became one the worst problems that consumers and with which credit unions had to contend. 

A CNBC article from July of 2020 reported, according to the Federal Trade Commission, Americans have lost more than $77 million dollars in fraud related to COVID-19, but that number may not be entirely accurate because of how little fraud is reported to the proper authorities. The report also found that the main way fraudsters were scamming people during the pandemic were targeting the personal information of victims to access their government-issued unemployment benefits and stimulus checks.

While this has been a time of unprecedented fraud, it has also been a time for credit unions to learn how to better protect their members from cybercrime. Here are a couple of notable fraud prevention techniques that credit unions can utilize, according to an article from CUManagement:

1. Data Analytics

   Sometimes, the signs of fraud are not obvious to the naked eye. Data analytics can help spot information and patterns that don’t pass the sniff test, which can identify potential markers for fraud. Having a strong analytics system in place can help your credit union better spot first and third-party fraud, as well as assist in detecting someone who is using a false, or synthetic identity.

2. Staff Training

   Having digital systems in place to check for fraud is a big help, but you can’t neglect the human side. Regular and frequent staff training is a must. How fraud is carried out constantly changes, so be sure to provide courses that are efficient, engaging and provide a simulation of real-world fraud situations.

Fraudsters are going to continue to find ways to steal credit unions and members’ money to make everyone’s lives miserable, so credit unions must remain vigilant to prevent fraud and help protect members. Be sure your credit union is prepared to serve as a key resource to help members avoid being scammed. Share the latest information on scams to be aware of and how to avoid getting scammed. Of course, one of the best things we can all do to fight against fraud is to report it when it happens. As we mentioned previously, fraud is underreported, so the more we report on it, the better chance we all have of fighting it.