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CUAnswers offers tips to prevent fraud

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GRAND RAPIDS, Mich. (2/19/09)--Since the Heartland Payment Systems data breach and a recent Visa fraud alert about attacks on audio response systems, CU*Answers is advising credit unions how to prevent fraud attacks designed to gain account information via audio response banking. Among its recommendations:
* Monitor personal identification number (PIN) activity. If a member's account is listed repeatedly, it could either mean the member is struggling and needs assistance, or someone is trying to guess the member's PIN. * Review your procedures for resetting PINs. If you do not have a good verification system to identify a member when someone calls and asks to reset a PIN, you are putting your members at risk. Bad guys sometimes have access to a member's name and other personal information. When in doubt, ask the member to visit the branch to verify identity before changing the PIN. * Check your default access settings. Do you automatically grant access to audio response for new members, even if they never elect to use it? Wait to grant access until the member requests it, and set up a confidential PIN while the member is in your presence. * Remind your members about audio response. Once the members are used to online banking, they don't use audio as often. Suggest they use the service periodically and change their PIN frequently.
CU*Answers is a West Michigan-based credit union service organization serving 165 credit unions across the nation with a variety of processing services.

CUNA Mutual to cover foreclosed commercial property

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MADISON, Wis. (2/19/09)--CUNA Mutual Group has partnered with Lee & Mason Financial Services Inc. to offer a stand-alone Commercial Foreclosure Property and Liability insurance policy for credit unions’ member business loans. Today’s difficult economy is straining member business loan (commercial loan) portfolios, said Michael Harty, director of Credit Union Protection Product Distribution for CUNA Mutual. “Commercial and residential property foreclosures are increasing and creating a potential coverage gap in a credit union’s insurance program,” Harty said. “CUNA Mutual’s Bond policy protects a credit union against coverage gaps for residential foreclosures. Our partnership with Lee & Mason now enables credit unions to better manage risks associated with owning an increasing number of foreclosed commercial properties.” Credit unions can choose coverage of property (building, contents, including equipment) and/or business liability. The commercial foreclosure policy features:
* Vacant, partially vacant, and business personal property coverage; * Three-, six-, nine-, or 12-month policy term options; * Single-coverage property, single-coverage business liability or both; * Basic (vandalism and malicious mischief) or special perils (includes basic perils and theft); * Actual-cash-value valuation; and * Deductible, limits of liability, and comprehensive options.
Harty said credit unions should insure a foreclosed property when performing any of the following activities:
* Filing a complaint for foreclosure. The credit union or its legal representative has deposited in the court or recorded with the court a pleading by which a foreclosure action begins; * Perfecting its right of repossession. The credit union has executed the power to evict the current occupant; * Acquiring through foreclosure, repossession, or deed in lieu of the foreclosure. The credit union now owns the property by foreclosure, or takes back the property through repossession, or the property is transferred to the credit union instead of or before the foreclosure occurs; and * Purchasing the property. The credit union has bought the property.
For more information, use the link.