Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
In media CU advises FIs fighting fraud
MARLBOROUGH, Mass. (12/3/09)--A credit union official shared insights in a Wednesday interview with Bank Info Security on how financial institutions, including credit unions, can fight fraud in light of new regulatory compliance and security initiatives that spell changes for financial institutions. Kris VanBeek, senior vice president of information systems at the $4.1 billion asset, Marlborough, Mass.-based Digital FCU, told the publication that changes in compliance and pending regulation that are looming this year and well into 2010 portend the possibility that financial institutions could lose efficiency. The transitions to meet new compliance requirements also could help fraudsters, he added. “Some of the real risk is the changes themselves …” VanBeek said. “Whenever you introduce changes to a system, if you didn't properly test them, whether it be an actual bug or maybe the logic wasn't there or it wasn't implemented in the most optimal method, so there is another risk there. “And then probably the most profound risk is the actual compliance regulations themselves,” he continued. “I think a good example of one of the major changes is some of the Reg CC changes with the Federal Reserve consolidating its processing centers into a single kind of super center in Ohio. What that does is changes Reg CC in terms of availability, and what better way for a fraudster to look at a potential opportunity than to change funds availability. “So again, whether you are going into an ATM, whether you are going into a branch, whether you are using remote capture to deposit an image from home or from some other source, the requirements of the funds to be available in a shorter timeframe presents an opportunity for fraudsters who are technically savvy and understand the process really well--sometimes as well as financial institutions themselves,” Van Beek said. To read the full interview, use the link.
Other Resources

RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
16 hours ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
1 Day ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
1 Day ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
1 Day ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
1 Day ago