Credit Union Magazine - January 2009 - (Page 41)

uOPERATIONS uTRENDS uSOLUTIONS Compliance Q&A LEAD STORY Fraudsters Seek Out Staff Fraudsters are taking a more personal approach to their craft through social engineering, the practice of obtaining private or proprietary information to use illicitly. So says Karen Daeke, senior vice president of security administration at $16.4 billion asset State Employees’ Credit Union, Raleigh, N.C., addressing the 2008 CUNA Operations, Sales & Service Council Conference in Williamsburg, Va. While fraudsters may use computers to reach consumers, says Daeke, the weak link with this threat is through credit union staff at all levels. She describes common steps in social engineering scams: u The fraudster “googles” a person’s name or credit union name to gather personnel titles, job responsibilities, and product information. u The fraudster now knows about the credit union’s products and staff, and can talk intelligently about them. u Phone numbers are readily available on Web sites, so the perpetrator knows whom to call for more information. continued u Q Does Regulation CC (Expedited Funds Availability A Act) require credit unions to post a funds availability notice on each ATM? Reg CC requires posting or providing a notice stating “funds deposited in the ATM may not be available for immediate withdrawal” at each ATM location where members can make deposits (Section 229.18[c]). The Federal Reserve Board’s Ofﬁcial Staff Commentary to the regulation explains the notice may be posted on a sign, shown on the ATM screen, or included on ATM deposit envelopes. The member must receive the disclosure before making the deposit. Therefore, a notice on the deposit receipt or on the ATM screen after the deposit occurs wouldn’t satisfy this requirement. A credit union operating an off-premises ATM from which deposits are removed no more than twice each week must disclose at or on the ATM the days on which deposits will be considered received. Q Can a credit union deduct service charges from an Ofﬁce of Foreign Assets Control (OFAC)-blocked account? Usually. OFAC regulations require credit unions to block property (i.e., freeze funds) and place the funds into a dividend or interest-bearing credit union account from which it may make only OFAC-authorized debits. Generally, OFAC regulations allow a ﬁnancial institution to debit blocked accounts for normal service charges. Such charges must be in accordance with a published rate schedule for the particular account type. Check with OFAC compliance staff before imposing charges because sanction program requirements vary (call 800-540-OFAC). May a credit union deny a servicemember’s request for a reduced interest rate if it determines military service hasn’t harmed this person’s ﬁnancial situation? Find out at A cuna.orgt JANUARY 2009t CREDIT UNION MAGAZINE 41 http://www.creditunionmagazine.com http://www.cuna.org

Table of Contents Feed for the Digital Edition of Credit Union Magazine - January 2009

Credit Union Magazine - January 2009 Contents On My Way Leading Edge Spotlight President's Perspective Game Plan Washington Insider Wright Stuff Executive Suite Reverse Mortgages Come of Age Six Merger Myths Leading-Edge Lenders TwentyFour/Seven Bankruptcy Compliance Tools of the Trade Trendlines Rates & Ratios Council Corner Shoptalk System Scan Marketplace Branching Out Advertiser Index

Credit Union Magazine - January 2009

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