Fraud exposures continue to plague our industry, many of which are tied to the expanded use of remote transaction channels. And with COVID-19, these crimes have only gotten worse.
What’s the deal with HELOC Fraud?
HELOC fraud crimes pose a potentially expensive fraud risk to credit unions, sometimes resulting in as much as six figure losses. Fraud criminals are aware of the fact that these open-ended loans can offer a lot of financial gain. They also know these loans are often not monitored as closely as an auto loan, mortgage loan, or credit card loan, and are therefore easier targets for an undiscovered attack.
HELOC attacks performed via remote channels have ramped up during COVID-19. Credit unions will want to take extra steps to review their controls surrounding HELOCs to prevent these dangerous attacks.
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