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As the FBI alerts companies to the cost of business email compromise (BEC) scams – the bureau indicated in a public service announcement based on self-reported victim complaints that $26 billion has been lost in the past three years as a result of these schemes – NAFCU Regulatory Paralegal Shari Pogach provides credit unions with more details on BEC trends and resources in a new NAFCU Compliance Blog post.

The NCUA is using October to remind credit unions to stay vigilant of cybersecurity issues and has a number of tips and resources available. As a leader in calling for national data security standards, NAFCU also has myriad resources available to ensure credit unions can effectively identify and address cybersecurity concerns.

In the blog, Pogach highlights that BEC scams have been a focus of financial regulators, law enforcement, and investigators in recent months:

• the Department of Justice (DOJ) in September announced a coordinated effort – Operation reWired – that disrupted BEC schemes, resulting in $3.7 million seized and 281 arrests made;
• a report from the Financial Crimes Enforcement Network (FinCEN) provided insights into these scams, including top industries targeted, amount of money lost, and common methods; and
• the NCUA in August alerted credit unions to the rise of BEC fraud schemes.

She further explains what these schemes typically entail, noting the FBI's alert that the fraud targets business transactions of all sizes. In addition, the DOJ has flagged that "foreign citizens perpetrate many of the BEC scams."

"They often belong to transnational criminal organizations, many originating in Nigeria but have since spread globally," Pogach writes. "These fraudsters are getting more sophisticated and often are backed by complex networks of both witting and unwitting money mules that assist in laundering their illicit proceeds through the U.S. and international financial systems."

Learn more about BEC scams and access resources in Pogach's blog. NAFCU's Compliance Team publishes a new blog every Monday, Wednesday, and Friday on key regulatory issues affecting credit unions. Sign up to receive new Compliance Blog posts.