NCUA issues risk alert on COVID-19 related fraud
NCUA issued a risk alert (20-RISK-02) highlighting the risk of fraud associated with the COVID-19 pandemic. Scammers are attempting to take advantage of opportunities made possible through new or expanded large government programs arising from emergency situations, such as the CARES Act.
According to NCUA, the alert is intended to describe increased risks associated with routine operations, outlines red flags associated with common fraud schemes in major CARES Act programs, provides references and avenues to report fraud or misconduct to the most appropriate authorities, and also provides member education resources.
Common fraud schemes include:
- Financial institution fraud, including new account fraud, identity theft, cybersecurity risks, imposter and money mule schemes, and mobile banking application fraud are on the rise because of the predominately virtual environment, and the significant shift towards remote access;
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