TruStage Risk Alert: Increase in Corporate Check Fraud

Credit unions are seeing a sharp rise in fraudulent deposit losses tied to stolen mail. Criminals are taking checks from the mail and using them to open fake business accounts, often in the name of the intended payee.

In some cases, these checks are being accepted without the proper endorsement-an oversight that can put a credit union's Fidelity Bond coverage at risk. When this happens, the financial institution that issued the check may file a breach of presentment warranty claim against the credit union, arguing the funds never reached the rightful payee.

To read the full report which breaks down how this scheme works, what warning signs to look for, and practical steps your credit union can take to protect itself, click here. (User ID/Password required)

If you have a question or would like a more detailed consultation on this emerging risk, you can contact Sara Taddeo at [email protected].

TruStage^TM is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.