20 THE NAFCU JOURNAL January–February 2023 FRAUD INFO RESOURCES Go to www.nafcu.org/compliance for links to blogs, articles, whitepapers and other sources of information on mitigating the risk of fraud and regulations related to fraud. RESEARCH DOCUMENTS RISE IN FRAUD In a NAFCU survey of members related to fraud, 42% of respondents reported a significant increase in fraud, and 100% reported at least some increase. Survey respondents also reported that card online transactions, along with check and P2P, were the payment channels most likely to correspond with an increase in attempted fraud over the past year. For all three channels, most respondents reported that the dollar amount of losses had also increased, and a subset (16%) observed losses for card online transactions increase over the past year by over 100%. Fraud involving online card transactions was cited by 42% of respondents as the most difficult type of fraud to prevent, followed closely by P2P (39%). NAFCU members can see a copy of the full report, at https://bit.ly/3Ykozdl. “ The old school fraud involved stealing checks from mailboxes and changing names on the check, but today online transactions provide the easiest way for fraudsters to get cash. Look at every service and program offered by the credit union and make sure you understand the inherent risk of each one. ” STEPHANIE PAINTER, BSA MANAGER, DUPONT COMMUNITY CREDIT UNION department to get new staff positions,” she said. “As you bring in new business, remember that you are bringing in more accounts and transactions to monitor.” While technology can help identify unusual activity, the actual investigation requires a person and time, said English. Over the next two years, she projects that she will add five to six people to her team that handles BSA and fraud activities. The first step to mitigating fraud is to remember that fraud is about getting cash, pointed out Painter. “The old school fraud involved stealing checks from mailboxes and changing names on the check, but today online transactions provide the easiest way for fraudsters to get cash,” she said. “Look at every service and program offered by the credit union and make sure you understand the inherent risk of each one.”
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