Scam/Fraud Awareness

Reminder: COVID-19 Fraud Schemes Still Occurring

As reported previously in our May 18th Risk Alert and July 8th Risk Alert, fraud schemes related to COVID-19 government programs such as additional unemployment benefits and the U.S. Small Business Administration’s Paycheck Project Program (PPP) continue to occur. 
 
Just recently, a credit union notified the Leagues of a credit union member receiving unemployment benefits from multiple states. In addition, the credit union notified the Leagues of two members, who were not small business owners, depositing large checks from MBE Capital (possibly PPP loan funds) and withdrawing the funds via Cash App and wire transfers.

Please be vigilant regarding these potential fraud schemes and review the previous Risk Alerts with appropriate staff.

  • NCUA Issues Risk Alert on COVID-19 Fraud Schemes (8/7/20)

The National Credit Union Administration (NCUA) Board has issued an alert to inform credit unions about the risk of fraud associated with the COVID-19 pandemic. Those committing fraud often attempt to take advantage of opportunities made possible through new or expanded large government programs arising from emergency situations, such as The CARES Act.
 
The CARES Act provides many ways for financial institutions to work with members impacted by the pandemic. This latest alert describes increased risks associated with routine operations, outlines red flags associated with common fraud schemes in major CARES Act programs, provides references and avenues to report fraud or misconduct to the most appropriate authorities, and also provides member education resources.