Risk Alerts

CUNA Mutual Group Risk Alert: ACH Booster Payment Fraud Impacts More Credit Unions

Originating ACH debits is a significant risk especially when ACH booster payments are introduced on credit union issued credit cards. Booster payments can be made through online banking, services offered by card processors, or other payment service providers (e.g., pay by phone service). Members use booster payments to inflate their credit limit and cause losses greater than the card's credit limit. The member uses the available credit limit created by the ACH booster payment before the payment is returned and will repeat this process multiple times until the fraud is discovered. Booster payments continue to impact credit unions with losses far greater than the established credit limits.

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ATM Skim Scam Claims Multiple Victims Including Fair Haven Fairgoers

FAIR HAVEN, N.J. -- Police are investigating a skimming device installed at a local ATM machine last month. The machine was used during the town’s popular firefighters’ fair.

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CUNA Mutual Group Risk Alert: Biometrics - Are You Compliant with Privacy Laws?

As biometric recognition technology has improved, biometric identifiers are being used in the authentication processes for employees and members. While the U.S. Federal Trade Commission issued recommended best practices for use of facial recognition, these best practices are nonbinding and serve only as guidance.

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CUNA Mutual Group Emerging Risk Alert: Lending Risk Oversight

Keeping pace with lending risks can be challenging. It takes constant monitoring and ensuring employees follow sound practices to make sure risks don't turn into lending program losses. Ensure your credit union is ready to rise above your risk.

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Sonic Drive-In Acknowledges Data Breach, 5 Million Cards Potentially Exposed

OKLAHOMA CITY, OK – KrebsOnSecurity reported yesterday afternoon that fast-food giant Sonic Drive-In has acknowledged a data breach that may have led to some five million credit and debit cards being exposed. The fast-food chain has 3,600 locations across 45 states.

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CUNA Mutual Group Risk Alert: Member Credit Freezes Create Credit Union Challenges

In response to a broad-reaching breach at one of the major consumer reporting agencies, several sources have encouraged affected consumers to freeze their individual credit accounts to prevent the potential for identity theft fraud.

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Equifax Announces Cybersecurity Incident Involving Consumer Information; 143 million people could be affected

ATLANTA – Equifax Inc. announced Thursday a cybersecurity incident potentially impacting approximately 143 million U.S. consumers. Criminals exploited a U.S. Web site application vulnerability to gain access to certain files.

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CUNA Mutual Group Risk Alert: WannaCry Ransomware Spreads Quickly & Attacks Worldwide

One of the largest ransomware attacks of all time, WannaCry, has already infected more than 200,000 victims in 150 countries. This unprecedented attack, first identified late last week, is primarily targeting organizations as opposed to individuals. An initial ransom of $300 in bitcoin is demanded for the return of blocked files; however, the ransom goes up every few hours.

Click here for the full risk alert.

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CUNA Mutual Group Risk Alert: Counterfeit Checks

Several credit unions recently reported that counterfeit cashier's checks or corporate checks that closely resemble the credit union's authentic checks have been presented for payment at financial institutions in connection with scams.  The counterfeit checks often have slight alterations in check color, check stock, logo, or location of key credit union check branding elements. In many cases, the Routing & Transit Number (RTN) and MICR information is accurate.

Click here for the full alert. 

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CUNA Mutual Group Risk Alert: Crime Gangs Target Off-Site ATMs

 A surge of burglaries of off-site automated teller machines (ATMs) - those not connected to a credit union branch - have resulted in large amounts of currency being recently stolen. The ATM burglaries appear to be the result of crime gangs targeting the less secure, off-site machines.

Click here to read the full alert. 

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Skimming Devices Evolve Into Shimmers

Recent reports from Canada and Mexico highlight the evolution of skimming devices into what are now being called "shimmers". Shimmers are growing in frequency and have the ability to access some of the data contained within chip-enabled plastic cards. This discovery adds to the challenges already facing EMV in its second year in the United States. However, there remain several reasons why EMV is still the best defense against card-present, counterfeit fraud.

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Improper Sales Incentive Programs Can Cause Consumer Harm Alert

The Consumer Protection Financial Bureau issued a bulletin that discussed the risks incentive programs can pose to consumers when the program creates an unrealistic culture of high pressure targets. Some employees have resorted to violating consumer financial laws in order to meet these incentive goals. Credit unions can use data to monitor employee practices relating to incentives. This data can be used to mitigate risks to consumers and determine when corrective action should be taken.

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Workout Facilities Can Introduce Work/Life Balance and Risk

With the New Year come New Year's resolutions. Many of those can involve getting more physically fit. Credit unions are increasingly providing exercise facilities and workout areas on premise for use by their employees. Making this commitment brings benefit to the employee and can even increase work productivity and reduce stress. However, on premise exercise facilities can also increase potential liability and other risks to the credit union.

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Counterfeit Checks Impact Members with HELOC Accounts

Counterfeit checks drawn on members’ home equity line-of-credit (HELOC) accounts have been recently reported by credit unions across the country. The amounts have been in the tens of thousands and up to $350,000 in some instances. Similarly, large dollar losses have been linked to counterfeit checks posted to member checking accounts funded by unauthorized advances from HELOC accounts or overdraft protection connected to HELOC accounts.

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Remain Vigilant of Tax Refund Fraud

The Internal Revenue Service reported a decrease in ID theft-related tax refund fraud through the first nine months of 2016 stopping 787,000 confirmed ID theft tax returns totaling more than $4 billion. Credit unions should remain vigilant as you are in prime position to identify tax refund fraud impacting your organization and your members based on the methods for issuing refunds – via ACH credit or check.

Click here to view the CUNA Mutual Group Risk Alert and mitigations.

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New Era Begins with MBL Rule Changes

With implementation only weeks away, the NCUA continues to revise examination guidance in preparation of the final Member Business Lending (MBL) rule. The final rule, which goes into effect January 1, 2017, emphasizes the principles of sound commercial lending reflected in Part 723, along with those addressing the statutory cap on member business loans.

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Be Safe and Smart During the Holiday Season

The holiday season brings familiar sights, sounds, feelings, and unfortunately fraud. Fraudsters fill with glee over the time period between Black Friday and New Year’s Eve as unsuspecting members let down their guard limiting traditional fraud prevention methods at a time where member service is most prevalent. And, what’s on every fraudster’s holiday shopping list? Data.

Click here to view the full CUNA Mutual Group Risk Alert and mitigations.

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