Need To Plan To Fight Fraud

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TALLAHASSEE, Fla.-The best way to address fraud is to ensure you have dedicated fraud resources within the CU and make fraud prevention a strategic priority.

That's the stance of Jim Park, president of CU24, who said if the credit union does not have a fraud officer it needs to get one. "Credit unions need to make fraud prevention part of all their planning sessions, and stay abreast of all the latest forms of fraud. Vendors need to be checked, too, to make sure they are up to date on their fraud prevention standards."

While financial institutions are receiving help in the form of stiffer penalties for criminals and a greater cooperation from authorities overseas, Park reminded that fraud perpetrators "have all the time in the world to think about new approaches to stealing people's identity and money. The credit union has to stay on top of the newest threats."

What has Park insisting on the increased CU fraud focus is how coordinated some of the crime rings are and how quickly they can get large sums of money. "I saw a recent story that said thieves, through just six to seven ACH hits at one time, can amass thousands, if not a million dollars. We have seen coordinated attempts where PIN and mag stripe information were stolen and duplicated in rapid succession and transferred cross country to hundreds of people who made big hits before they could be stopped."

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