Fraud Prevention
Credit unions are fighting a rapid surge in fraud, and the data shows it costs American consumers billions. This is an issue that goes well beyond the financial sector, impacting the economy as a whole. A collaborative, whole-of-government approach is needed to successfully address the threat of fraud across all sectors and to deliver relief for credit unions and consumers who are under attack from criminals and scammers.
The burden of fraud continues to rise, and credit unions cannot absorb fraud losses without limit. America’s Credit Unions is working to prevent any effort to expand financial institutions’ liability under the Electronic Fund Transfer Act (EFTA) and Regulation E. Policymakers should address the root causes of fraud and increase available resources for law enforcement and consumer education on fraud and scam risks rather than enact legislation that would merely shift costs to credit unions.
Access a handout with key data to support advocacy efforts:
America’s Credit Unions supports the Task Force for Recognizing and Averting Payment Scams (TRAPS) Act (S. 2019 / H.R. 4936). This bill would form a Treasury task force to examine current trends and developments in payment scams.
Hear how one quick-thinking credit union teller, long-lasting member relationships, and knowledge of fast-growing scams prevented a member from becoming the latest victim of financial fraud.
Recognizing what credit unions already do to protect their members is important as Congress looks ahead to an all-encompassing federal data privacy law. Hear more from America’s Credit Unions Director of Innovation and Technology, Andrew Morris.