February 5, 2025

Mitigating Telecom Fraud and Call Spoofing for Credit Unions

Scammers know that credit unions and other financial institutions have information they can use to commit fraud. They also know that credit union members tend to trust their financial institutions, which could make them relatively easy targets.

With this knowledge, bad actors often use call spoofing tactics to target credit union members. Therefore, financial institutions and the call centers they use must prioritize mitigating telecom fraud. Failing to do so could damage your brand reputation and hurt your members. On the other hand, taking action could improve your brand’s reputation and encourage more people to join your credit union.

Impersonation Scams on the Rise

Credit unions face several threats, including data breaches, call spoofing, and scammers that target employees for sensitive information.

A scammer might spoof one of your credit union’s outbound numbers. Members feel comfortable answering calls from your numbers, so they might provide private information much more easily than when talking to someone they don’t think is part of your organization.

Once the bad actor makes your members feel safe, they might try to get information about their debit card numbers and online account passwords. They might even request money for fake payments.

In some ways, impersonation scams have become more widespread and effective because criminals can use text messages, emails, and voice calls to target consumers.

The good news is that credit unions can take steps to help mitigate telecom fraud.

Mitigating Telecom Fraud

Educating your members is one of the most effective ways of mitigating telecom fraud. Make sure all of your members receive information about detecting potential scams.

For instance, you should explain that your representatives will never ask for account numbers or passwords. Consumers should hang up and report the call if someone asks for sensitive information.

It might help to have a dedicated phone number people can use to report potential fraud attempts. Include the number on your website, newsletters, and log-in pages to ensure members know how to contact you with their concerns. The earlier you learn about a scam, the sooner you can stop it from harming others.

Engaging in Proper Dialing Habits

Of course, there are times when your credit union employees will need to contact a member about important matters. Engaging in proper dialing habits helps build trust so you can reach people when necessary.

Importantly, you should avoid robodialing your members. Although robodialing is legal in some situations, consumers see it as an untrustworthy strategy used by scammers. Avoid it to build and maintain trust.

You also need to comply with all federal, state, and industry regulations. All organizations must follow the Telephone Consumer Protection Act’s (TCPA) regulations, such as only calling consumers between 8 a.m. and 9 p.m. (their local time) and avoiding numbers on the Do Not Call (DNC) Registry.

Learn more: Building Consumer Trust Through Outbound Dialing Compliance.

Monitoring Your Phone Numbers

Even when you follow proper dialing habits, your outbound numbers can get flagged or labeled. When spoofing attempts occur, consumers report your number to third-party apps. It doesn’t take long for your spoofed number to collect flags and labels that make it hard for you to contact members.

That makes it critical for you to monitor your phone numbers. Caller ID Reputation’s Device Cloud service makes monitoring easy by giving you screenshots from real phones using popular service providers. You get to see precisely what appears on your members’ caller ID. Our phone number monitoring services will also notify you of any damaging information so you can stop using the number immediately.

Phone Number Remediation Services

If a number receives flags, you can reach out to service providers and other companies to have the negative information removed. That process takes a lot of effort and time, though. Alternatively, Caller ID Reputation’s Number Redress & Remediation can handle those steps for you so you can start using the tainted numbers as soon as possible.

Maintaining an Accurate Caller ID

Maintaining an accurate caller ID helps your members know it’s safe for them to answer your calls. While call spoofing might use your number and credit union’s name, the scammers rarely provide additional information. Enhance your caller ID information by adding department names, logos, and other identifiers. The more information you can provide, the more trustworthy your calls look to consumers.

Learn more: How Important Is an Accurate Caller ID?

Protect Your Credit Union With Help From Caller ID Reputation

Federal and state government regulations have helped prevent many of the bad behaviors that erode trust. Still, phone number spoofing remains a serious problem that can prevent credit unions from reaching current and potential members.

Caller ID Reputation’s suite of services puts you back in control of your outbound numbers. Contact us today to see how Caller ID Reputation can help.