Credit unions and other financial institutions are facing increasing financial fraud. A TransUnion report found that since the start of 2021, attempted fraud targeting the financial services industry had spiked considerably. This fraud runs the gamut from money laundering and counter terrorist fraud to mule scheme-related synthetic identity thefts and peer-to-peer payment fraud. Current market conditions are only intensifying this fraud climate. The pandemic; the Ukraine War; growing tensions between the U.S., Russia and China; the greater use of cryptocurrencies; the growth of online platforms and mobile apps to make instant payments, declining economic conditions and reliance on third parties are all contributing to the uptick in financial fraud.

While research from found that 93% of credit unions had started funding security, authentication or digital identity initiatives in 2021, they still lag behind other financial institutions in their application of advanced technologies for fighting financial fraud. They do, however, recognize that traditional methods can no longer stand up to today's onslaught of fraudulent transactions, especially given how rapidly fraudsters are introducing new schemes. What is needed are advanced technologies with real-time monitoring capabilities designed to detect and prevent financial fraud. Understanding the current threat landscape, and how these technologies work to reduce fraud and support regulatory compliance, is a good first step toward keeping fraud at bay.

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