Coronavirus crisis response programs ripe for fraud: NCUA
The coronavirus crisis is presenting fraudsters with unique opportunities to ply their trade, the National Credit Union Administration warned credit unions last week.
New account fraud, identity theft and cybersecurity risks deserve heightened attention, as more business is conducted virtually, NCUA Chairman Rodney Hood warned in a letter to credit union officials.
“Fraudsters are particularly motivated to attempt these schemes because of the predominately virtual environment, and the significant shift towards remote access,” Hood wrote. “Fraudsters are increasingly seeking opportunities to exploit vulnerabilities in financial institutions’ remote access systems and customer-facing processes.”
Hood warned credit union officials that Small Business Administration loan programs created in response to the pandemic may be ripe for fraud. He cited several “red flags” that might indicate fraud, including:
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