Q: What are the biggest fraud trends credit unions should be watching right now?
A: California’s Credit Unions and Nevada’s Credit Unions are hearing about a major rise in AI-driven scams — including deepfake voice impersonation, synthetic identity fraud, and business email compromise (BEC) schemes where fraudsters mimic CEOs or staff. Members are also being tricked into authorizing transactions through convincing voice or video calls.
We encourage credit unions to update incident response plans and staff training to include AI impersonation awareness. Review Regulation E liability standards for induced-authorized payments.
Q: Are there new regulatory focus areas for 2026?
A: Yes, regulators are increasing emphasis on:
Expect examiners to ask how your credit union is adapting policies and controls to these emerging areas of regulatory focus.
Q: How should credit unions handle the rise in elder and youth financial exploitation?
A: Elder exploitation continues to be one of the fastest-growing fraud categories. Younger members are now also being targeted via social media “money mule” schemes.
We encourage credit unions to train staff to recognize red flags, use account notes to document concerns, and follow state reporting laws for elder abuse.
Reference: See the CFPB’s “Reporting Financial Exploitation of Older Adults” guidance and the NCUA’s Elder Financial Abuse resources.
For more information, email Heather Line.
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:
Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
Additionally, other League-member compliance resources include:
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