COVID-19 Fraud Schemes Posted by AVCU on 4:08 PM

The NCUA Board is issuing this alert to inform credit unions about the risk of fraud associated with the COVID-19 pandemic. Those committing fraud often attempt to take advantage of opportunities made possible through new or expanded large government programs arising from emergency situations, such as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The CARES Act provides many ways for financial institutions to work with members impacted by the pandemic. This alert describes increased risks associated with routine operations, outlines red flags associated with common fraud schemes in major CARES Act programs, provides references and avenues to report fraud or misconduct to the most appropriate authorities, and also provides member education resources.

RISK ALERT