As hard as it is to believe, it’s once again time to start in on all our New Year’s resolutions. But first, we wanted to step back and share our predictions for 2018. The thought leaders of Trellance gazed deeply into their crystal balls and came up with their vision for what might happen in this new year, and the implications for the credit union community.
Mike Chenderlin, Senior Portfolio Consultant
- To say fraud will increase is not even a small stretch as far as predictions. But 2018 will bring much more complex and evolved forms of fraud to credit unions, in the form of account take-overs, false account openings and synthetic fraud. All ways in which criminals can make money, but which existing fraud detection systems won’t notice. The existence of all the breached Equifax profiles on the dark web just makes this that much easier for fraudsters to open an account, obtain a credit card and a loan, and walk away with the proceeds, leaving the credit union with the liability.
Implications for credit unions: Many credit unions are dipping their toes into the online and mobile loan origination waters, which is the preferred method for fraudsters to commit crimes remotely. Additional scrutiny needs to be placed on new members and new loans acquired through online channels.
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