As businesses and consumers continue to quickly adapt to the arrival of COVID-19 unfortunately, so are fraudsters. The Department of Justice (DOJ), World Health Organization (WHO), and FBI have all issued warnings about the rise in COVID-19-related fraud schemes that are exploiting unsuspecting victims across the country. And as more payments shift to digital and mobile channels in the wake of state-level shutdowns, the potential for not only fraud but also transaction disputes will place an increased burden on your credit union and members.
“As more members fall victim to targeted fraud schemes, we may see a rise in the number of card disputes and fraud claims, potentially amplifying fraud losses for credit unions,” said Ashley Town, CO-OP Director of Fraud Services. The good news is, so far in March, CO-OP has seen a decrease in the number of traditional fraud cases happening within the CO-OP ecosystem and we hope that trend continues.
To help credit unions and their members stay extra vigilant during this period of time, CO-OP’s resident fraud experts Ashley Town and Paul Love (Chief Information Security & Privacy Officer) shared three common COVID-19 fraud schemes to watch out for at our recent FraudBuzz webinar (click here to watch a recording):
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