In 2021, consumers reported losing over $5.8 billion to fraud, more than a 70% increase from the previous year, according to the Federal Trade Commission. And, in the first six months of 2022, $3.56 billion was lost to online fraud, almost a 50% increase from the same period in 2021. Fraud is increasing, and there seems to be no shortage of avenues through which it occurs: Credit card, insurance, identity and the list goes on. In addition, the state of the economy and the lingering threat of a recession have encouraged scammers and fraudsters to increase their efforts.
Below are three key themes around financial crimes that credit unions should keep in mind heading into 2023, along with strategies they should consider to survive.
Check Fraud Is Increasing
Although check circulation has been declining for some time, check fraud attempts have been dramatically rising over the last several years. A recent FrankonFraud article stated that check fraud currently makes up around 60% of all attempted fraud against U.S. financial institutions. The abundance of personal information included on a check, i.e., a customer’s name and address, makes it very easy for fraudsters to open a bank account and apply for loans on behalf of the victim. Additionally, fraudsters are now figuring out new ways to commit check fraud by leveraging social media.
With greater access to personally identifiable information in this digital world, real-time solutions are crucial…
