MADISON, Wis. (8/27/13)--Credit unions nationwide are warned of loan-fraud schemes involving fake independent car dealers located in Indiana and Florida, according to a CUNA Mutual Group Risk Alert for its bond policyholders.
Fraudsters recruit individuals to open accounts at credit unions under their real identities and apply for loans to purchase high-end vehicles from the fake car dealers. The individuals are paid for their efforts (The New Jersey Credit Union League's The Daily Exchange Aug. 22).
CUNA Mutual said credit unions should consider these risk mitigation steps when processing loan applications submitted by new members for the purchase of vehicles, especially high-end vehicles, from unknown independent car dealers:
To view the alert, use the link.