WASHINGTON--Fraud is a top concern across all financial services, but smaller credit unions with less staff and fewer resources can be hit especially hard. America’s Credit Unions Small Credit Union Advocacy Advisory Panel tackled fraud experiences and a way forward on solutions during its latest meeting this week.
A survey of panel members’ most pressing concerns showed fraud as the top concern among all respondents. One member estimates that staff at their small credit union spend 90 minutes per day, every day, dealing with fraud prevention, education, and other efforts to protect members from the latest scams, ACU said.
Long-running scams like check washing are an issue, while smartphones and new technologies are also making entire populations more vulnerable to exploitation.
Members noted that all this comes as retailers look to cap the interchange fees that credit unions use to partially cover some prevention costs. Credit unions also continue to comply with rigorous requirements under the Gramm-Leach-Bliley Act but often bear the costs when another part of the payments chain isn’t secure, ACU noted.
Using feedback directly from members of this panel, its other committees, and membership at large, America’s Credit Unions said it will continue to engage with Congress, regulators, and the administration on empowering credit unions to fight fraud. Panel members also named regulatory burdens and accessing new technology like stablecoins as top areas of concern for small credit unions. The panel will discuss potential solutions for those issues at future meetings, ACU said.
America’s Credit Unions also provided an update on the recent housing Executive Order, and reminded panel members that credit union feedback and engagement will be critical to ensuring the NCUA and CFPB execute the relief called for by the order.