Articles

Fraud can be costly and time-consuming for individuals, businesses, and nonprofits alike. With cybercriminals constantly refining their tactics, it's more important than ever to take proactive steps to protect your financial well-being. According to the Association of Certified Fraud Examiners, the typical organization loses an average of 5% of its revenue to fraud each year.

At NW Plus Credit Union, we are committed to helping you stay protected. We offer tools, education, and security features specifically designed to keep your accounts safe—especially when it comes to online banking, bill pay, and fraud protection.

The Hidden Costs of Fraud

Fraud doesn’t just result in direct financial loss. LexisNexis reports that for every $1 lost to fraud, the average recovery and mitigation cost is now $3.75—a number that continues to climb as scams become more sophisticated. This includes expenses like chargebacks, fees, and time lost. Fraud can impact nearly every area of an organization. Reports show that nearly half of all fraud originates in just four departments:

• Operations (15%)
• Accounting (12%)
• Executive and Upper Management (11%)
• Sales (11%)

What Makes Small Organizations Vulnerable?

Small businesses and nonprofits often focus on day-to-day operations and can unintentionally overlook the risks of fraud. It’s crucial to routinely examine financial activity, monitor account trends, and train staff to spot anomalies. Even just one set of diligent eyes reviewing daily account activity can make a difference.

In a 2021 survey by the Association for Financial Professionals, 7 out of 10 organizations reported being the target of payment fraud. Common schemes include compromised business emails and fake check issuers.

Smart Steps to Protect Your Business

Implementing layered fraud protection strategies can significantly reduce risk. One highly effective tactic is the dual-control process, where one person initiates a transaction and a second person approves it. If you’ve delegated financial responsibilities, having checks and balances in place is essential. In addition to providing education and resources on fraud/ security protection at NW Plus, we support small businesses through checking and savings accounts, loans, lines of credit, and more. Visit nwpluscu.com to learn more.

Fraud Prevention Tips

Here are several proven ways to protect your organization, based on guidance from the Federal Trade Commission:

• Verify invoices before issuing payment—only pay for goods or services that were ordered and delivered.
• Limit purchasing authority to a select group of authorized staff and clearly define procedures for invoice approval.
• Be cautious of payment method red flags—wire transfers, reloadable cards, or gift cards are often used in scams.
• Watch for spoofed emails and fake websites. Cybercriminals can make them look legitimate, so encourage staff to pause and verify.
• Secure your digital assets: Keep software updated, back up files, use strong passwords, and enable two-factor authentication wherever available.
• Never leave laptops, phones, or other devices unattended, especially in public places or locked cars.

The Bottom Line:

Fraud prevention isn’t a one-time effort—it’s an ongoing commitment. Staying alert, educating yourself and your team, and using available resources can make a big difference. NW Plus Credit Union is here to help. 

Never share your account number, passwords, answers to security questions or other account information. We will never ask you for this type of information when we call or email you. If someone claiming to be a NW Plus CU representative asks for sensitive account information over the phone or in an email, end the conversation immediately and call us at 425.297.1000 or come to one of our branches to report the incident.