WASHINGTON, D.C (July 16, 2025) |
The Defense Credit Union Council (DCUC) recently sent multiple letters to congressional subcommittees, addressing issues related to artificial intelligence (AI) fraud, rural lending access, and digital asset regulation.
Combatting AI-Enabled Financial Fraud
In a letter to the House Judiciary Subcommittee on Crime and Federal Government Surveillance, DCUC noted the rising threat of AI-driven scams and detailed proactive steps defense credit unions are taking to safeguard members.
“Defense credit unions are not waiting for bad actors to strike – we are equipping ourselves with machine learning and real-time alert systems to stop scams as they happen,” says Jason Stverak, DCUC Chief Advocacy Officer.
In the letter, Stverak highlighted several examples of credit unions leveraging AI tools to combat fraud:
- Launch Credit Union (FL): Deployed RembrandtAi to stop check and card fraud, saving over $3.5 million in 2024.
- Affinity Federal Credit Union (NJ/NY): Partnered with Point Predictive to enhance fraud detection during auto loan processing.
- Digital Federal Credit Union (DCU) (MA): Using SnapLogic and AgentCreator to build an AI-powered fraud infrastructure.
In addition to technology, DCUC also highlighted the importance of member education, in-branch scam awareness events, and close partnerships with base commanders and VA offices.
DCUC also reaffirmed its support for legislation such as the TRAPS Act, aimed at improving inter-agency coordination and giving financial institutions tools to freeze suspicious transactions.
Addressing Credit Access in Rural Communities
Ahead of the House Agriculture Subcommittee hearing on rural lending, DCUC provided its comments and advocated for reforms to improve credit access for farmers and ranchers.
DCUC urged Congress to:
- Reassess the outdated 12.25% Member Business Lending (MBL) cap
- Modernize membership and lending rules for agricultural loans
- Ensure fair competition between credit unions and the federally-backed Farm Credit System (FCS)
These changes are critical to allow credit unions to better support rural economies and compete on a level playing field.
Calling for Clear and Equitable Digital Asset Regulation
In a letter to the House Ways and Means Subcommittee on Oversight, DCUC took a neutral but pragmatic stance on digital assets, centered on member protection and regulatory clarity.
“We neither champion nor oppose any specific technology – our priority is safeguarding members and promoting financial readiness,” says Stverak.
DCUC’s recommendations included:
- Harmonizing regulations across federal agencies
- Granting NCUA explicit authority to oversee credit union digital asset activities
- Ensuring regulatory parity with banks and fintech firms
- Protecting military consumers from fraud and volatility in crypto markets
DCUC also urged inclusion of credit unions in digital asset advisory groups and regulatory pilot programs.
Stay up to speed with DCUC’s advocacy and representation at dcuc.org/news.