Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

NCUA alerts industry of email fraud risk

Email A Friend Printer Friendly Version
0 comments
Inside the Beltway
Friday, August 9, 2019

Reporting a rise in losses related to compromised business email systems, the National Credit Union Administration (NCUA) has sent out an alert advising credit unions of steps that can be taken to prevent email fraud. NCUA recommended that entities report instances of such fraud to the FBI’s Internet Crime Complaint Center immediately when they occur.

Credit unions that are prompt in reporting incidents to the Internet Crime Complaint Center, also known as IC3, increase the likelihood of having funds recovered after they’ve been wired under fraudulent pretenses, according to the alert.

Business email compromise describes the act of impersonating a legitimate business or person to request or access fraudulent payments. Perpetrators often compromise a victim’s email address or domain, or use publicly available services to spoof the information.

“Criminals impersonate people in a variety of industries ranging from real estate, law, religious organizations, and business vendors, and use email to initiate or redirect a wire transfer before a victim discovers the transaction,” the alert states. “They also use social engineering, spoof business email accounts, or send fake links to further these types of schemes. They typically leverage a victim's authority to pressure a target into acting quickly or secretly when handling a transfer.”

Based on data gathered by the FBI (in cooperation with financial, domestic, and international law enforcement partners) between October 2013 and May 2018, there have been more than 78,000 incidents of domestic and international business email compromise. The prevalence of such occurrences spurred the FBI to create a recovery asset team in February 2018 with the goal of quickly identifying and freezing suspicious wire transfers before funds are transferred or removed from a suspect’s account.

The alert lists the following steps credit unions can take to help prevent business email compromise fraud:

  • “Never make a payment change without verifying the change with the intended recipient.
  • Verify the accuracy of email addresses when checking mail on a mobile device.
  • Use a two-step verification process to verify wire requests with members, and use information from previously known email addresses and phone numbers rather than what is provided in the wire transfer request.
  • Require staff to investigate and verify changes to members’ personal information or business practices of the credit union’s vendors or member business accounts.
  • Know the routines of members’ wire activity and contact them with any changes or concerns before sending a wire transfer.
  • Verify transaction details with the recipient bank before sending a suspicious wire transfer.
  • Use email spam filters to quickly identify potential fraudulent or spoofed emails.
  • Create rules in the credit union’s intrusion detection system to flag emails with extensions that are similar, but different to, your credit union or members.
  • Use caution posting information on social media and company websites, especially job duties/descriptions, hierarchal information, and out-of-office details.
  • Implement multi-factor authentication (MFA) for corporate email accounts that requires at least two pieces of information to login (something a user knows, such as a password, and something a user has, such as a dynamic PIN).”

More self-protection strategies are outlined on the United States Department of Justice’s “Best Practices for Victim Response and Reporting of Cyber Incidents,” NCUA noted.

The National Association of Federally-Insured Credit Unions (NAFCU) noted that it also has a host of cybersecurity compliance resources intended, in part, to help credit unions mitigate email fraud risk.

Today's other top stories
Senate passes budget package, industry welcomes borrower-friendly provisions
Real estate lenders welcome nixing of ‘retaliatory’ taxes on foreign investors
FHFA directs GSEs to incorporate crypto assets into mortgage risk assessments
MBA supports eliminating HUD multifamily green housing proposal
Regulatory Roundup: Agencies release CRA assessment data, April home price index


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 4199 times.

Monthly Newsletter

Dodd Frank Update July 2025

Cover Story:

Former CFPB attorneys say state CFPA rights are for the courts to decide


News by Topic   News by Edition   News by Agency   News by Industry   In-depth Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update June 2025
Dodd Frank Update July 2025
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2025 State of the Industry
CRA and Affordable Housing
2025 State of the Industry
Who's My Regulator?
Fair Lending
Mortgage Technology
Marketing Compliance for Lenders
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2025 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
IN-DEPTH REPORTS
INDUSTRY
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
Current Edition
June 2025
May 2025
April 2025
Archives
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
2025 State of the Industry
Real Estate Compliance Outlook
CRA and Affordable Housing report
Who's My Regulator?
Fair Lending
Marketing Compliance for Lenders
Archives
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
2025 Economic Outlook Series
CFPB's Shake-Up & Its Impact on You
Data Privacy Compliance
Fintech Partner Compliance
Strategies post-NAR settlement
Industry and Regulatory Outlook
Securing Your Cyber Network
Compliant Marketing Tactics
2024 Economic Forecast Series
Webinar Archives
Data Privacy Vault
Keys to Real Estate podcast
Blog - Tuesdays with Mary
1071 Compliance Guide
eClosing Solutions Showcase
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement