Wednesday, May 25, 2011 1:20:00 PM
Several New Jersey and Pennsylvania credit unions have recently experienced card fraud and in some cases losses have also resulted. CUNA Mutual's Protection Resource Center has put out several alerts warning that credit unions have experienced an uptick in card fraud over the last few weeks and what they might do to identify and prevent such activity. One Alert stated that the "fraudulent transactions are continuing to occur both within and outside of the U.S. The fraud is taking different paths and may not be related to a single event."
It is critical for credit unions to identify the type of fraud to make sure the credit union is implementing the proper risk controls to manage the card exposures. Below are three important steps that credit unions should take:
- Enhance monitoring of their card transactions.
- Examine unusual activity closely.
- If unusual or fraudulent activity occurs, take steps to alert CUNA Mutual's Protection Resource Center, the credit union's card processor, and the card association (Visa, MasterCard, etc.)
Go to NJCUL's Scams & Alerts page or find resources from CUNA Mutual Protection Resource Center's Card Fraud Risk Alerts and Loss Prevention Library below:
Risk Alert: Card Fraud Takes Many Different Paths
Risk Alert: Credit Unions Experiencing Up Tick in Card Fraud
Risk Alert & Loss Prevention Library*
*user ID & Password required
NJCUL will continue to provide updates on this situation.