ALEXANDRIA, Va.–NCUA is again cautioning credit unions over risks related to the coronavirus pandemic.
In a new Risk Alert (20-RISK-02), the agency is cautioning scammers are seeking to commit fraud try 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).”
In the Alert NCUA is warning of the increased risks associated with routine operations, while it has also outlined red flags of the fraud schemes, offered references and ways to report fraud or misconduct, and listed member education resources.
Among the specific fraud issues highlighted in the Risk Alert are those associated with the SBA’s Paycheck Protection Program (PPP), business tax credits, and unemployment insurance.
File Those SARs
Credit unions are being urged to contact it and federal law enforcement in cases where fraud is suspected and to file suspicious activity reports (SARs) through FinCEN.
In such cases, NCUA recommended credit unions to include the type of fraud and name of the scam or scheme in the appropriate field of the SAR.