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| All-of-Government approach to aid Credit Unions in Fighting Fraud |
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Credit unions’ experience fighting fraud, and how government can help combat it, were covered in testimony from Park Community Credit Union General Counsel Kate McKune. Testifying on behalf of America’s Credit Unions, McKune shared her credit union’s experience, as well as potential solutions, with the House Financial Services Subcommittee on Financial Institutions.
“What is needed is a commitment at the federal level to work with financial institutions to help combat fraud and scams by using an all-of-government approach,” she said.
“Key elements of this include avenues and protections for increased information sharing, modernizing of regulations and elimination of onerous regulatory burdens, the ability to use technology in the fight against fraud and scams, and a national consumer education effort to heighten awareness.”
She described the time and resources that Park Community invests in training staff to detect fraud and protect members from exploitation.
Despite their fraud loss prevention efforts being generally successful and an all-time high, “our charge-offs from fraud are also up, over $300,000 in both 2024 and 2025, as the volume of fraud we face is increasing. We had nearly 6,500 fraud alerts in 2025, which averages to nearly 20 a day.”
Subcommittee Chair Andy Barr-R-Ky., and full committee Chair French Hill, R-Ark., said in opening statements that credit unions and community banks are “on the front lines” of the fight against fraud, and agreed a whole-of-government approach is needed to help them.
America’s Credit Unions supports the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act, bipartisan House and Senate legislation that would establish a Treasury task force to examine current trends and developments in payment scams. It also maintains fraud resources and tools, as well as information to aid in advocacy efforts.
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