Credit union witness testifies to the true cost of defending members against fraud

Despite significant investments in fraud detection tools, consumer education, and data security, credit unions report each year that fraud remains a top concern. Testifying before a House Financial Services subcommittee on behalf of America’s Credit Unions today, Park Community Credit Union General Counsel and Vice President Enterprise Risk Kate McKune will detail all that credit unions already do to protect their members and offer suggestions for lawmakers as they work to address fraud. 

Noting the timeliness of the testimony as Congress may be considering further reductions in or limiting of interchange rates, which play an important role in helping protect a consumer’s data over card networks, McKune will outline the significant cost already at hand as the industry tries its best to combat fraud.  

McKune will also offer support for greater interagency coordination, expanded information sharing authority, and close collaboration with law enforcement to address fraud. Through her opening remarks, she will outline several objectives that should be prioritized when lawmakers consider an effective national strategy to mitigate fraud: 

• Encourage the use of innovative technology, including artificial intelligence, to improve early warning capabilities; 
• Offer technical assistance and grants to support efficient information exchange between small, community financial institutions and other payment system stakeholders; 
• Promote regulatory modernization (particularly for funds availability rules); and 
• Prioritize consumer education. 

The hearing is scheduled for 10 a.m. Eastern this morning and will be livestreamed on the committee’s website.  

Access America’s Credit Unions resources on fraud—alongside a breakdown of advocacy efforts—and stay tuned to Daily News for a full recap of the hearing.