Katie BaileyAccount takeover has emerged as a primary fraud threat facing credit unions, with criminals increasingly using impersonation, stolen credentials, and social engineering to gain access to member accounts.
According to Hammer the Scammer: The Fraud Defense Playbook, a clear majority of credit unions interviewed identified account takeover as the fraud type responsible for their greatest dollar losses over the previous two years.
Fraudsters may impersonate credit union fraud departments and persuade members to share login credentials or one-time passcodes. Once inside an account, criminals can change contact information, create new payees, and move funds across multiple payment channels.
The playbook emphasizes that traditional authentication methods alone may not be enough. Credit unions should also consider device information, behavioral patterns, transaction activity, and other signals to identify suspicious activity before losses occur.
By combining stronger authentication with coordinated fraud controls, credit unions can take steps toward identifying account takeover risks earlier and better protecting their members.
