Employee Fraud Could Cost Your Credit Union $140,000

A recent study revealed some scary statistics about employee fraud at financial institutions. The study found that most schemes last about 18 months before they’re detected and result in a loss of about $140,000.

“The longer a perpetrator works for an organization, the higher fraud losses tend to be,” CUNA Mutual Senior Risk Management Consultant Roger Nettie said in a recent Credit Union Times article.

The study also showed that employee corruption represented 45% of fraud losses. Many credit unions think their employees are trustworthy and don’t have enough strategies in place to prevent internal fraud.

“Fraud does not discriminate. There is no immunity to this exposure based on geography, asset size, employee tenure, or past experience,” Nettie said in the article.

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