The NAFCU Journal May - June 2019 - 30

''

We tell our employees, 'If
you see anything that is against
Pen Air's policies and procedures,
inform us. We will safeguard
your identity.'

''

- RYAN ROSS, SENIOR VICE PRESIDENT AND CHIEF RISK OFFICER,
PEN AIR FEDERAL CREDIT UNION

Also important are tiered approval
limits on specific types of transactions,
says Ross.
Carroll also suggests credit unions of all
sizes outsource some of their auditing
functions and a review of policies -
"having a fresh set of eyes look at your
controls is extremely important."
Waner points to the importance of
internal audits, especially in preventing
fraud at the teller level. "We count cash
at the end of shifts and do surprise
cash counts," she says, "and we really
don't have any employee losses."
She also notes that they often find
issues when employees are taking
their required 40 hours off or when
they're rotating in new employees.

"Someone will say, 'This just doesn't
look right,'" she says, and that gives
the credit union the opportunity to
investigate and see whether there is
any fraudulent activity.
Technology tools can help prevent fraud.
For example, Ross says Pen Air recently
launched RSA keys, a secure ID to log in
to computers. "It's a key fob that's based
on you, and the numbers change every
60 seconds. There's never a password to
log on. That keeps others from being able
to guess your password and get into your
computer." Of course, this works only
when employees log off their workstations
when leaving, so it is important to emphasize this procedure. Waner mentions a
specific case in which an employee used
another employee's workstation and teller

number to cash fraudulent checks, and it
took about a month to get the proof they
needed of that activity.
Ross also points out that cash isn't
the only area to monitor. Mileage logs
and credit charges are given extra scrutiny
by supervisors at Pen Air. Additionally,
call center calls are recorded, file maintenance records track account changes, and
all new memberships and accounts go
through quality assurance reviews.

Culture Is Key to Catching and
Preventing Fraud

Giving employees the opportunity to
speak up when they see something
unethical is a key component of a
fraud-preventing culture.

Pen Air Federal Credit Union includes
a whistleblower procedure in the
employee handbook. Says Ross, "We tell
our employees, 'If you see anything that
is against Pen Air's policies and procedures, inform us. We will safeguard your
identity.' " They also ask employees to
sign a commitment card to show that
they are living the credit union's culture
of honesty and integrity.
Employee onboarding is an important
moment for setting culture. Waner says
all new employees at her credit union
meet every member of senior leadership
during their orientation. "From the get-go,
employees visit with the vice presidents
and the president, and they get to know
who we all are," she says. "And I talk about
fraud and let them know that our culture
is open and we depend on them to alert
us - if there is something suspicious, you
need to tell someone." That openness has
paid off. Waner says Allegiance employees report suspicious activity directly to
human resources, rather than the ethics
hotline they've set up.
At Apple Federal Credit Union, open
access to leadership continues after new
employee orientation with branch visits
from the CEO and the head of human
resources (its "chief people officer") and
town hall meetings at which the credit
union comes together to hear from senior
management. Additionally, they provide

30

THE NAFCU JOURNAL  MAY-JUNE 2019



The NAFCU Journal May - June 2019

Table of Contents for the Digital Edition of The NAFCU Journal May - June 2019

The NAFCU Journal May - June 2019
Contents
Conferences
From the Chair
Washington and Industry Briefs
The Bottom Line
Welcome, New Members
Knowledge Is Power Credit unions leverage data and analytics for strategic business growth.
Lowering the High Cost of Internal Fraud Policies, culture and training work together to improve fraud detection and prevention.
2019 Annual Conference Exhibitor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal May - June 2019 - The NAFCU Journal May - June 2019
The NAFCU Journal May - June 2019 - Cover2
The NAFCU Journal May - June 2019 - Contents
The NAFCU Journal May - June 2019 - 2
The NAFCU Journal May - June 2019 - Conferences
The NAFCU Journal May - June 2019 - From the Chair
The NAFCU Journal May - June 2019 - 5
The NAFCU Journal May - June 2019 - Washington and Industry Briefs
The NAFCU Journal May - June 2019 - 7
The NAFCU Journal May - June 2019 - The Bottom Line
The NAFCU Journal May - June 2019 - 9
The NAFCU Journal May - June 2019 - 10
The NAFCU Journal May - June 2019 - 11
The NAFCU Journal May - June 2019 - Welcome, New Members
The NAFCU Journal May - June 2019 - 13
The NAFCU Journal May - June 2019 - 14
The NAFCU Journal May - June 2019 - 15
The NAFCU Journal May - June 2019 - 16
The NAFCU Journal May - June 2019 - 17
The NAFCU Journal May - June 2019 - Knowledge Is Power Credit unions leverage data and analytics for strategic business growth.
The NAFCU Journal May - June 2019 - 19
The NAFCU Journal May - June 2019 - 20
The NAFCU Journal May - June 2019 - 21
The NAFCU Journal May - June 2019 - 22
The NAFCU Journal May - June 2019 - 23
The NAFCU Journal May - June 2019 - 24
The NAFCU Journal May - June 2019 - 25
The NAFCU Journal May - June 2019 - Lowering the High Cost of Internal Fraud Policies, culture and training work together to improve fraud detection and prevention.
The NAFCU Journal May - June 2019 - 27
The NAFCU Journal May - June 2019 - 28
The NAFCU Journal May - June 2019 - 29
The NAFCU Journal May - June 2019 - 30
The NAFCU Journal May - June 2019 - 31
The NAFCU Journal May - June 2019 - 32
The NAFCU Journal May - June 2019 - 33
The NAFCU Journal May - June 2019 - 34
The NAFCU Journal May - June 2019 - 2019 Annual Conference Exhibitor Directory
The NAFCU Journal May - June 2019 - 36
The NAFCU Journal May - June 2019 - 37
The NAFCU Journal May - June 2019 - 38
The NAFCU Journal May - June 2019 - 39
The NAFCU Journal May - June 2019 - 40
The NAFCU Journal May - June 2019 - 41
The NAFCU Journal May - June 2019 - Executive Spotlight
The NAFCU Journal May - June 2019 - 43
The NAFCU Journal May - June 2019 - 44
The NAFCU Journal May - June 2019 - 45
The NAFCU Journal May - June 2019 - Management Insight
The NAFCU Journal May - June 2019 - 47
The NAFCU Journal May - June 2019 - Compliance Central
The NAFCU Journal May - June 2019 - 49
The NAFCU Journal May - June 2019 - Inside NAFCU Services
The NAFCU Journal May - June 2019 - 51
The NAFCU Journal May - June 2019 - From the President’s Desk
The NAFCU Journal May - June 2019 - Cover3
The NAFCU Journal May - June 2019 - Cover4
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