Knowing which emerging risk is right around the corner is a challenging task, especially when bad actors continually adapt their strategies, often reinventing old scams and taking advantage of new vulnerabilities. Staying informed about emerging risks, insights, and trends can help organizations better anticipate challenges and protect their bottom line.
While every organization has a unique risk footprint, some key risk areas have evolved quickly—leading to six- and seven-figure losses for credit unions across the country. These losses involve account takeovers, fraudulent checks/deposits and risks associated with interactive teller machines (ITMs) and automated teller machines (ATMs).
Once these bad actors find something that works, they expand their operations into other credit unions throughout the country, often using money mules—people who knowingly or unknowingly transfer or move illegally acquired money on behalf of someone else. The good news is that you can learn from these losses, which have been trending over the last 12—18 months, and minimize the frequency and severity of these losses by adopting appropriate loss controls.
Account takeovers
Account takeovers, where fraudsters use social engineering methods to manipulate your members into sharing login credentials and two-factor authentication passcodes, continues to be one of the fastest-growing trends. Thieves typically send spoofed text alerts and impersonate your staff via phone calls. In some cases, fraudsters already have usernames and passwords and simply trick members into providing that final key bit of information.
Compromised accounts are often drained through external transfers of money mule accounts. In newer schemes, both the compromised accounts and those of money mules—often recruited via social media—are used to move funds quickly.
Fraudulent checks and deposits
Fraudulent checks remain a surprisingly effective fraud tool. Stolen mail is a major factor, as thieves target personal and U.S. Postal Service mailboxes or even steal keys from postal workers. Once they have checks from the stolen mail, they use tactics like washing, altering and counterfeiting.
Major fraud methods include:
- Stealing and altering member-issued checks to access cash, in many cases negotiated outside your institution to bypass some of your authentication controls.
- Recruiting money mules to open accounts and cash stolen or counterfeit U.S. Treasury checks.
- Opening fraudulent business accounts to deposit and cash stolen Treasury checks before they’re returned.
ITM and ATM risks
Nationwide, losses involving ITMs and ATMs continue to rise in 2025. These attacks are complex and often involve multiple players.
- ITM fraud: Fraudsters make unauthorized withdrawals using the ITM’s self-service feature. In some cases, deep-insert skimmers have been found inside ITMs.
- ATM jackpotting: Criminals trigger the machine to disperse all available cash. Fraudsters use several methods, including installing a “black box” device inside the machine. Again, money mules are often used to collect the funds.
- ATM smash and grabs: A resurgence in brute force attacks, including blowtorches, vehicle-assisted thefts or explosives to rip apart the machine and gain access to cash canisters, are sweeping several states.
Identifying and mitigating risks before they impact your bottom line requires a proactive approach. Tools such as alerts, educational resources, and expert consultations can help reduce both the frequency and severity of potential losses.
Stay ahead of the threats
Don’t let emerging risks catch you off guard. As a longstanding partner, TruStage understands that staying ahead of evolving threats is critical for credit unions. That’s why we’re sharing the latest insights into what’s driving significant losses today and what you can do to protect your institution. Learn more about our tailored business solutions at www.trustage.com and explore helpful resources in our Business Protection Resource Center.
TruStage™ Fidelity Bond policyholders can explore more tools and support by visiting our Business Protection Resource Center. You can also reach out to a TruStage risk consultant at riskconsultant@trustage.com or call 800.637.2676.
To deepen your understanding of money mule tactics, take a look at our on-demand webinar, Money Mules & Their Schemes, available now at www.trustage.com.
Want to stay ahead of emerging fraud tactics? Don’t miss these upcoming webinars:
- August 20 – ITMs & ATMs: A Criminal’s Money Chest
- September 17 – Transaction Fraud & Scams
Registration is available through the Business Protection Resource Center.
TruStage™ Insurance Products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, Inc, members of TruStage Financial Group, Inc. Some coverages may not be available in all states. If a coverage is not available from one of our member companies, CUNA Mutual Insurance Agency, Inc., our insurance producer affiliate, may assist us in placing coverage with other insurance carriers in order to serve our customers’ needs. CUMIS Specialty Insurance Company, Inc., our excess and surplus lines carrier, underwrites coverages that are not available in the admitted market. Corporate Headquarters 5910 Mineral Point Road, Madison, WI 53705 Cyber policies are underwritten by Beazley Insurance Group or other nonaffiliated admitted carriers.
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