Kate McKune, general counsel and vice president of enterprise risk at Park Community Credit Union, testifies at the House Financial Services Subcommittee on Financial Institutions on March 5, 2026.
A credit union executive told lawmakers Thursday that fraud remains one of the biggest threats facing financial institutions and their members, despite significant investments in detection technology and security systems.
Kate McKune, general counsel and vice president of enterprise risk at Park Community Credit Union in Louisville, Ky., testified before the House Financial Services Subcommittee on Financial Institutions on behalf of America's Credit Unions.
McKune said credit unions across the country are investing heavily in fraud detection tools, employee training and consumer education, but criminals are becoming increasingly sophisticated. At Park Community alone, fraud alerts reached nearly 6,500 in 2025, about 20 per day, while fraud charge-offs exceeded $300,000 in both 2024 and 2025.
Nationwide, fraud losses are also rising. Industry data showed financial crime losses reached $132 billion in 2023, while Federal Trade Commission figures indicated scams cost consumers $12.5 billion in 2024.
McKune warned lawmakers that proposals to further reduce interchange revenue could undermine fraud prevention efforts, noting that payment network investments funded by those fees play an important role in protecting consumer data.
She urged Congress to adopt a coordinated national strategy to combat fraud, including stronger information-sharing authority between financial institutions, expanded collaboration with law enforcement and regulators, and incentives to adopt technologies such as artificial intelligence.
"Credit unions like Park Community and our members are under constant attack from criminals," McKune said, emphasizing the need for a "whole-of-government approach" to fighting fraud.
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