Structured loan fraud: How attackers target credit unions
🔍 Flare researchers identified organized, process-driven loan fraud methods on underground forums that use stolen identities, social engineering, and workflow knowledge to impersonate legitimate borrowers. Attackers focus on passing knowledge-based authentication (KBA) and reconstructing verification answers from public sources and leaked datasets. They preferentially target small- and mid-sized credit unions perceived to have weaker fraud detection, then rapidly move funds through intermediaries to complete cash-out before detection.
