WASHINGTON–A meeting held by America’s Credit Unions Small Credit Union Advocacy Advisory Panel identified fraud as a top issue of concern as it affects smaller credit unions with less staff and fewer resources especially hard, according to the trade group.
“A survey of panel members’ most pressing concerns showed fraud as the top concern among all respondents,” America’s Credit Unions said in releasing an overview of the meeting. “One member estimates that staff at their small credit union spend 90 minutes per day, every day, dealing with fraud prevention, education, and other efforts to protect members from the latest scams.”
During the meeting, ACU said participants noted:
- Long-running scams like check washing are an issue, while smartphones and new technologies are also making entire populations more vulnerable to exploitation.
- The developments are occurring at the same time retailers are looking to cap the interchange fees that credit unions use to partially cover some prevention costs. Credit unions also continue to comply with rigorous requirements under the Gramm-Leach-Bliley Act but often bear the costs when another part of the payments chain isn’t secure.
Other Issues Identified
‘’Using feedback directly from members of this panel, its other committees, and membership at large, America’s Credit Unions will continue to engage with Congress, regulators, and the administration on empowering credit unions to fight fraud,” the organization said.
Panel members also named regulatory burdens and accessing new technology like stablecoins as top areas of concern for small credit unions, America’s Credit Unions said, adding the panel will discuss potential solutions for those issues at future meetings.
America’s Credit Unions further said it also provided an update on the recent housing Executive Order, and reminded panel members that credit union feedback and engagement will be “critical to ensuring the NCUA and CFPB execute the relief called for by the order.”
