The red flags include:

Non-characteristic large withdrawals on a member's account via check to a new payee;
Members complaining of a check or checks stolen from the mail that are deposited into an unknown account;
Members complaining that a check they mailed was never received by the intended recipient;
Checks used to withdraw funds from members' accounts appearing to be of a noticeably different check stock than check stock used by the issuing bank and check stock used for known, legitimate transactions;
Members with no history of check deposits experiencing new check deposits, withdrawals or transfer of funds;
Non-characteristic, sudden, abnormal deposit of checks, often electronically, followed by rapid withdrawal or transfer of funds;
Examination of suspect checks revealing faded handwriting underneath darker handwriting, giving the appearance that the original handwriting has been overwritten;
Suspect accounts that may have indicators of other suspicious activity, such as pandemic-related fraud;
New members opening accounts that are seemingly used only for the deposit of checks followed by frequent withdrawals and transfer of funds; and
A non-member attempting to cash a large check or multiple large checks in person and, when questioned, providing an explanation that is suspicious or potentially indicative of money mule activity.

In addition to filing a SAR, credit unions should refer their members who may be victims of mail theft-related check fraud to file a report with USPIS at 1-877-876-2455 or uspis.gov.

Instant Insights /

Reported Nationwide Check Fraud Schemes Have Surged, FinCEN Data Shows

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