Risk Alerts

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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