Katie BaileyFraud is evolving, and credit unions need strategies that go beyond traditional detection methods to protect their institutions and members.
Hammer the Scammer: The Fraud Defense Playbook, commissioned by The League of Credit Unions & Affiliates and LEVERAGE and developed by Cornerstone Advisors, offers industry benchmarks, insights into emerging threats, and actionable strategies credit unions can put into practice.
The playbook highlights account takeover as a primary fraud threat and examines the growing challenges of fraud across payment channels. Industry benchmarking data shows median annual fraud losses reached $10.64 per checking account for U.S. credit unions, an increase of more than 10% from the prior year.
To help credit unions strengthen their defenses, the playbook outlines five actionable strategies:
- Implement biometric and behavioral validation.
- Reevaluate funds-availability practices.
- Strengthen card-number security.
- Conduct recurring member education.
- Participate in fraud consortiums and peer networks.
Together, these strategies offer a coordinated approach to identifying fraud risks earlier, strengthening controls, and preserving the trusted relationships credit unions have built with their members.
