Special Roundtable Covers Main Areas of Emerging Fraud, Spurs Ideas for Future Session Topics

Posted by Marissa Anema Thursday, February 14, 2013 10:39:00 AM


HIGHTSTOWN, N.J. – On Tuesday, February 12, 2013, CUNA Mutual’s Carlos Molina led a very informative session on three main areas of emerging fraud: wire/HELOC fraud, online banking fraud, and data breaches.

The group "live" in Hightstown at the League discuss emerging areas of fruad with participants at the two remote locations. 

Molina shared that fraud targeted at credit unions continues to increase and any wires funded by Home Equity Line of Credit (HELOC) should be a big red flag. Credit unions as “member-focused service providers” are considered easier prey as they often sacrifice security for service.

While most CUs have wire policies, they usually contain step-by-step instructions on how to perform the wire and often don’t include verification procedures. Molina suggested increasing standard verifications due to the ability to access personal information online. The standard name, account number, and last 4 digits of a social security number are just not enough to positively identify a member over the phone. He added that extra caution exists with fax requests or even with a call back. It is too easy for fraudsters to forward phones and further fool financial institutions. He also cautioned credit unions about the type of transactions members can perform using audio response functions.

Molina reviewed online banking fraud and cited examples of scams, including phishing, man-in-the-browser attacks, and more, and offered recommendations for minimizing risk at the credit union. 

The session concluded with data breaches. A data breach can result in more than loss of data; it can damage a credit union’s reputation as well as cause financial, compliance, and legal risk. Filled with many examples and tips, this presentation hit not only the need for more business controls, but training on personal safety for staff and members. 

Malware, fraud, user procedures, mobile devices…Look for more Roundtable Sessions in the future that address these critical areas!

The presentation Fraud Hot Topics can be found on the League Web site at www.njcul.org/resources-materials.aspx


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