NCUA flags rise in email fraud

The NCUA sent a risk alert to credit unions Monday, warning the industry of the rise in business email compromise (BEC) fraud schemes and potential related losses. Regulators are targeting this type of fraud, which recent data from the Financial Crimes Enforcement Network (FinCEN) revealed that BEC scams led to more than $300 million stolen a month in 2018 – more than three times what was reported in 2016.

NAFCU recently shared with FinCEN ways to improve information sharingbetween government agencies, law enforcement and financial institutions to better combat Bank Secrecy Act-related issues. The agency highlighted its efforts to combat BEC scams as it released related data last month.

In its alert, the NCUA explained what BEC scams typically look like and encouraged credit unions to report such fraud to the FBI’s Internet Crime Complaint Center, which created a recovery asset team last year due to the significant increase in complaints and losses.


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