RISK MITIGATION ECOSYSTEM
Protecting Against Emerging Fraud Threats
Stay informed, stay protected: Expert insights to help credit unions safeguard against evolving fraud threats.
Stay informed, stay protected: Expert insights to help credit unions safeguard against evolving fraud threats.
The fraud landscape is evolving faster than ever, with artificial intelligence poised to accelerate risks. Technologies like ChatGPT and “FraudGPT” enable criminals and “DIY” fraudsters alike to generate deceptive content with unprecedented ease, while machine learning helps them refine their tactics.
As the threat landscape continues to shift, Velera is committed to helping credit unions stay informed and prepared.
CNP fraud is expected to surge by 40% in 2025, driven by data breaches, social engineering scams, and automated bot attacks.
Credit unions should take note of these key points:
AI advancements are proliferating synthetic ID fraud practices, particularly in loan applications and account openings—contributing to $1.8 billion in losses in 2023, with a 26% increase in early 2024 alone.
To combat this growing threat, credit unions should deploy AI/Machine Learning models to analyze data and suspicious patterns and implement ID verification processes, including:
AI has contributed to an 81% surge in ATO incidents since 2019, with sophisticated social engineering tactics like phishing and vishing as key drivers. Phishing-as-a-Service kits have made these attacks easier to execute.
To protect your credit union and members:
Consumer-engaged fraud, also known as first-party fraud, can be intentional or unintentional, making both investigation and education vital.
Credit unions can reduce this risk by educating members about common fraud tactics and keeping a pulse on generational trends, particularly the rising prevalence of Gen Z involvement in consumer-engaged fraud.
