'Tis the season for fraud! Teller questions if member fraud is suspected.

 

When a credit union employee suspects a member may be subject to fraud, they should initiate a careful conversation focusing on the nature of the transaction and external influences. The goal is to help the member identify red flags without the employee asking for sensitive personal information that the credit union should already have on file. 

Initial Verification Questions   .pdf

Before discussing the specifics of the suspicious activity, the employee should confirm the member's identity in accordance with established internal protocols. 

Questions About the Transaction/Activity

If the member confirms they are conducting a suspicious transaction (e.g., a large wire transfer or purchase of gift cards), the employee should ask questions to help the member pause and think critically: 

• "What is the purpose of this transaction?"
• "Do you personally know the person or business you are sending money to?"
• "Have you ever met them in person?"
• "Where did you locate this business/individual?" (e.g., website, social media, phone call)
• "Where did the funds for this transaction originate?" (e.g., an unexpected check deposit)
• "Does this offer or request seem too good to be true?" 

Questions to Identify Common Fraud Red Flags

The conversation should focus on identifying common manipulation tactics used by fraudsters, often referred to as the "4 Ps": Pretend, Problem, Pressure, and Pay. 

• Pretend/Imposter Red Flags:
• "Who contacted you about this (phone, email, text)? Did you initiate the contact?"
• "Are they claiming to be from a government agency, a law enforcement officer, or perhaps a family member in distress?"
• "Did they provide proof of their identity that you were able to independently verify (e.g., by calling an official number you looked up yourself, not one they provided)?"
• Problem Red Flags:
• "Are they telling you there is an issue with your account, computer, or a family emergency that requires immediate action?"
• Pressure Red Flags:
• "Are you being pressured to act immediately or told that your account is at risk if you don't act right now?"
• "Has the person you are communicating with instructed you to keep this situation a secret or warned you not to talk to anyone else, including credit union staff?"
• Pay Red Flags:
• "Are you being asked to send money via wire transfer, purchase gift cards, or use a specific digital payment method to 'fix' the problem or receive a payment?"
• "Are you being told not to tell the credit union about the true origin or purpose of the money involved?" 

Key Employee Actions

• Stay Calm: Help the member slow down and think clearly.
• Do not ask for sensitive information: Never ask the member to provide their PIN, full Social Security Number, online banking password, or a verification code sent to their phone over the phone or via email. The credit union already has this information.
• Advise official channels: If there is any doubt, the employee should advise the member to hang up and call the credit union's official, published phone number to verify the situation.
• Document and report: Document the conversation and report any suspicious activity to the appropriate internal teams and potentially law enforcement or the NCUA using the NCUA Fraud Hotline Form. 

Teller .pdf

Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board