Policies Increase Exposure To Fraud
BURLINGTON, Mass.-Credit unions' exposure to fraud may be increasing, suggested Mike Braatz, SVP and general manager of banking solutions for Memento Security.
"Credit unions can be more exposed to fraud loss due to their funds-availability policies, which are based on the premise that credit unions are smaller and know their members better," said Braatz. But CUs may not know as much as they think they know about risks to member accounts, he said.
And as the big banks deploy successful fraud prevention systems, fraudsters will increasingly target smaller institutions, Braatz said.