ATLANTIC CITY, N.J. – Fraudsters know just as much about your credit union’s transactions than you do. Or they know more.
Ken Otsuka, senior consultant in business protection risk management for CUNA Mutual Group, solved that problem for Reality Check attendees Tuesday with his presentation “What Fraudsters Know That the CEO Needs to Know”, which covered ACH, wire, loan, and payment card fraud.
CUNA Mutual Group’s Ken Otsuka reviews the latest to look for in ACH, wire, loan, and payment card fraud.
After polling the crowd on their ACH capabilities, Otsuka warned that originating ACH debits is the biggest risk as he presented an ACH fraud case study that cost a credit union over $300K.
To avoid ACH fraud, Otsuka recommends credit union understand what capabilities they (or their vendors) are providing and set member eligibility guidelines for online ACH debit capability.
Otsuka then delved into what’s trending in wire fraud, including HELOC accounts, online account takeovers, CEO email fraud, and real estate closings.
Scrutinizing online membership and loan applications and using an identity verification/fraud service to verify identity should be a part of your credit union’s identity theft prevention process, Otsuka said.
When it comes to payment card fraud, Otsuka urged credit unions who haven’t adopt EMV to do so as soon as possible. “Non-EMV portions of card portfolios are getting hit hard,” he warned.
View more Reality Check photos here.
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