In March, we saw the first signs of attack coming via the phishing email avalanche that hit Americans with a 600% increase in just one month, as reported by Barracuda Networks.

Then in April, we were all alerted to the several devious ways that crooks were creating stimulus check scams against Americans (including your members) who were desperately in need of the funds to stay afloat.

Several federal agencies released a critical alert in May stating that the coronavirus pandemic was helping to facilitate "malicious attempts leveraging stimulus-themed emails and text messages to obtain personally identifiable information and bank account details from individuals." The IRS, Department of Homeland Security and Secret Service, among others, have been particularly concerned about the intrusions happening within health care organizations and are encouraging heightened controls, especially for teleworkers operating in unsecured places.

In May, the Institute on Aging also released a warning about criminals aggressively targeting the elderly.  Elders, who maintain the vast majority of the nations' wealth and face more isolation as they are at the highest risk during the pandemic, have become appealing prey for cybercriminals. Elderly members need some focused attention at this time and it would benefit credit unions to show them special support.

A Beazley study released in June also indicated that businesses are being highly targeted by sophisticated thieves. Phishing scams and the confusion of the virus have created an excellent opportunity to drive up ransomware attacks on a wide variety of industries. Credit union members are also being affected, as many of them are consumers, employees and owners of these vulnerable businesses.

Perhaps one of the most alarming warnings came in June from the FBI, when it announced that significant attacks had been made on mobile banking apps and fake banking apps were being developed by criminals. COVID-19 has caused more people (your members) to bank remotely and increased mobile banking usage. According to the FBI, "Hackers are increasingly aiming at mobile banking app users to steal credentials and commander bank accounts."

In light of this mountain of evidence that credit union members are facing unprecedented levels of risk for ID theft and fraud events, the question becomes, "What will credit unions do to help them?" The answer starts with an awareness campaign that educates members about what is happening around them concerning cyber hacking, phishing emails, stimulus scams and various fraud attacks. Now is the time to create an "eyes wide open" moment for members to be on guard and ready to defend themselves.

Of course, credit unions can go the extra mile for members, which is what they are known for, and incorporate protective ID theft and fraud services as part of their member-owned accounts. Hundreds of credit unions nationwide have begun to provide their members with this "ultimate safety net of protection." Programs are readily available to make this happen while also providing the opportunity to generate much needed non-interest income to offset growing fraud losses and pandemic-related revenue gaps, and secure funding to maximize institutional protection as well.

All of this being said … wouldn't now be a good time to give members a positive solution to fight this spreading crime wave? Where would you want your members to go other than the credit union they trust?

Jim McCabe

James McCabe is EVP for Vero in Scottsdale, Ariz.