Credit union model helps fight fraud, deter scams
Credit unions’ personalized service to members is a built-in safeguard against fraud and scams, especially relevant during the holiday season, America’s Credit Unions President/CEO Scott Simpson wrote in RealClearPolicy Monday.
“Credit unions advise members to adopt a disciplined approach: pause before acting, verify sources through official channels, avoid unsolicited links, and stop communicating if something seems off,” Simpson wrote.
Credit unions have been successful in protecting members through vigilance in numerous instances, he adds, including:
- At Y-12 Credit Union in Tennessee, tellers prevented a member from withdrawing a large sum to purchase bitcoin for a scammer posing as a government agent;
- Achieva Credit Union in Florida thwarted a scheme involving a fraudulent plea for bail money; and
- In New York, Community Resource Credit Union stopped a $30,000 withdrawal intended for criminals who convinced a member his account had been compromised.
Simpson also noted that understanding the difference between fraud and scams is essential. Fraud typically involves unauthorized use of personal data, while scams rely on consent obtained under false pretenses.
America’s Credit Unions continues to engage regulators and Congress on solutions to stop fraud and scams and to ensure the credit union perspective is included.