More than two dozen credit unions have been hit and some have suffered losses ranging from $100,000 to $400,000 in a home equity line of credit scam, according to Roger Nettie, a senior consultant of risk management at CUNA Mutual Group.
The Madison, Wis.-based company issued an alert this week regarding a wave of scams aimed at the accounts.
Cybercriminals used information from public records such as mortgages and social media such as Facebook to pinpoint potential targets and to steal members' identities, gain access to online banking accounts and transfer funds, Nettie said.
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"In these latest cases, it usually starts with an account takeover so they can change the member's email or password to get into their online banking and move HELOC funds to their share draft account," he explained.
Fraudsters posing as members used details they've gained to impersonate members when they called to request a wire transfer, he explained.
To avoid being victimized by the scam, Nettie advised credit unions to exercise extreme due diligence when processing requests for wire transfers and to avoid wiring large transfers unless the member is in the branch.
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