Leading up to 2020, the shift toward digital-first consumer
behavior was picking up steam. Activities like shopping, gambling, and dating had become widely accessible online. When the pandemic hit, those consumers who had yet to adapt to these online behaviors were forced into the digital space. This rapid shift created opportunity for business to reach consumers seeking to maintain some semblance of normal life; but, it also created opportunity for fraudsters to strike, and they struck hard.
According to the FTC, who saw 2.2 million fraud reports, consumers lost over $3 billion in 2020. Similarly, they collected nearly 1.4 million identity theft reports, doubling the 2019 stat. CNBC reported the Office of the Inspector General for the Department of Labor conservatively estimates $36 billion was fraudulently stolen from unemployment benefits. It is understandable then, that consumers have become increasingly skeptical.
Credit unions can help to build consumer confidence by promoting practical fraud prevention strategies and engaging in transparent communication when fraud occurs.
Include essential fraud prevention tips in regular correspondence with members.
Identity theft and fraud prevention measures:
- Regularly check credit report
- Monitor accounts daily for unauthorized transactions
- Keep personal computers protected with current Anti-Malware software
- Browse and shop on secure sites only
- Use strong passwords and change them frequently
- Do not respond to spam email, texts, or click suspicious links
- Avoid posting too much personal information on social media
Credit unions can also build consumer confidence by maintaining transparent communication if fraud occurs. Creating a positive member experience through a stressful life event like fraud is a powerful differentiator and keeps with the mission of People Helping People.
Building consumer confidence and a secure, positive member experience is mission critical for member loyalty and engagement. At LSC, we’re here to help!
MaryAnne Colucci, LSC, Director of Fraud & Risk
