Members
willingly give away their personal and financial information and then get
tricked into authorizing wires, ACH, plastic card and other types of monetary
transactions. Protecting members from themselves is a tricky proposition.
Recognizing
scams can be difficult for both you and your members. But you can slow the
growing rate of scams by remaining vigilant and continuing to provide awareness
and great member service.
Unfortunately,
scams are on the rise. Nearly 25 million Americans lost a total of $8.9 billion
to phone scams alone in 2017, according to a 2018 TrueCaller survey. These
numbers, while significant, only scratch the surface. Consider these
statistics:
·
On
average, Americans receive 23 spam calls and 8.5 spam texts in a month.
(TrueCaller)
·
The
average user receives 16 malicious emails per month (Symantec 2018 Internet
Security Threat Report) with the fraudster looking to trick the individual into
giving access to account, login, or financial information.
A primary
factor is whether a victim finds a fraudster’s story convincing—and to what
degree. A good scam artist provides enough information and urgency to compel a
victim to act quickly. Unfortunately, with an aging population, perpetrators
are preying on the elderly, who tend to let their guard down more easily.
What can you do?
- Familiarize yourself with the most common scams using tools
such as CUNA Mutual Group’s Emerging
Risks video series, RISK Alerts and Protection Resource Center.
- Educate members about known scams in one-on-one
settings, during community events, and on the credit union’s website or in the
newsletter.
·
If
you suspect a member has fallen victim to a scam, respectfully share your concerns with the member. Hopefully this
will remedy the situation but be prepared with information and examples of
scams.
CUNA Mutual
Group’s Risk & Compliance Solutions also helps you stay at the forefront of
loss trends and prevention strategies by providing educational resources. Check
out the Consumer
Scams emerging risk page to learn more.
