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Credit Union Protection Highlights

Private Flood Insurance – What’s Next?

The National Flood Insurance Program is set to expire in September, but it’s anyone’s guess as what will happen. In the meantime the NCUA and other federal financial agencies continue to work on revised rules for private flood insurance. Although the program is aimed at providing affordable flood insurance for homeowners and protecting lenders' collateral, credit unions and other mortgage lenders have expressed some valid concerns with the NCUA proposed rules, including:

  • Increased liability. The proposed rules place the burden directly on lenders to determine if a private flood policy meets requirements. If a credit union determines that a specific policy does not meet requirements and that determination is overruled in court, the credit union would be liable. Conversely, if a credit union approves a specific policy and an NCUA examiner determines it does not meet requirements, the credit union will be subject to action. A safe habor is needed to protect credit unions.
  • Increased cost of compliance. Credit unions would have to develop internal insurance expertise or hire an outside vendor to review and research each private flood insurance policy to determine if it meets requirements. Again, a safe habor is needed.
  • Limitations of forced-placed policy reviews. Rules for cancellation of forced-placed insurance require credit unions to accept the member’s flood policy declaration page.This does not allow the credit union to determine if the private flood insurance meets requirements. An approved list of private flood policies is needed to determine if a private flood policy meets requirements.
  • Complete policies not available at closing. Full insurance policies are often not received until weeks after the closing. Proposed private flood policy requirements would add significantly to loan processing time—and perhaps even drive borrowers away.
  • Commercial vs. residential. The proposed rules do not take into consideration the differences between commercial and residential private flood insurance policies or the level of sophistication of commercial insurance purchasers.
  • Required financial ratings of insurance providers. The financial strength standards of insurance providers required by credit unions are not addressed in the proposed rules.
Archive
Find the Pattern. Minimize Plastic Card Fraud.

Plastic card fraud is predicted to reach a staggering $31.67 billion worldwide by 2020.*

While your Plastic Card Insurance Policy helps to protect your credit union’s card program(s) from catastrophic fraud losses, you can help control your exposure by:


  • Converting to EMV chip-based cards and authentication system, if you have not already done so.
  • Establishing success metrics for fraud and understanding the levers that can help you maintain the right balance between security and member experience.
  • Leveraging the valuable tools, resources and expertise CUNA Mutual Group’s Risk and Compliance Consultants make available to you through the Protection Resource Center.
  • Keeping a watchful eye and finding the pattern as close to real-time as possible.
  • Accessing the prerecorded February webinar: Card Fraud Trends Continue to Grow. 

*Card Fraud Losses Reach $21.84 Billion, The Nilson Report, October 2016.


CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group. Some coverages may not be available in all states. If a coverage is not available from one of our member companies, CUNA Mutual Insurance Agency, Inc., our insurance producer affiliate, may assist us in placing coverage with other insurance carriers in order to serve our customers’ needs.
CUPRM, PC-1705792.1-0217-0319


October – Don’t Think Halloween, Think Data Security

October marks National Cyber Security Awareness month reminding you to take the time to review your digital policies and procedures.

7 out of 10 businesses hacked learned from an external party.*

Your members count on you to protect their sensitive information from falling into the wrong hands. A data breach can result in more than lost data. It can damage your credit union’s reputation, shake your members’ trust and could cost you tens of thousands of dollars to repair.

CUNA Mutual Group’s cyber solutions will help you better manage risk and keep your business open in the event of an attack. Additional valuable tools and resources are available within the Protection Resource Center.


*Mandiant M-Trends 2015 Report, February 2015
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group. Some coverages may not be available in all states. If a coverage is not available from one of our member companies, CUNA Mutual Insurance Agency, Inc., our insurance producer affiliate, may assist us in placing coverage with other insurance carriers in order to serve our customers' needs. CUNA Mutual Group, 2016 All Rights Reserved. CSS-1617716.1-1016-1118

Overlooking extra expenses could cost you

Extra Expense is the necessary extra costs you incur to minimize the suspension of your business and allow you to continue operating your credit union as close to normal as practicable, after a covered loss.
Here are some things to consider:

  • The loss as a worst case scenario.
  • The politics and ordinances that could impact your recovery timeline.
  • The construction timeline for building a better and newer building, especially considering weather delays, building code issues, and demand for resources.
  • Due to the high volume of equipment requests from other businesses and a limited supply in a disaster zone, increased costs can be associated with the necessary equipment.

 Use our Coverage Calculator to identify potentially risky coverage gaps.

 


Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group.

PBL-1547664.1-0716-0818

Tax Refund Fraud – Remain Vigilant

ID theft-related tax refund fraud involves fraudulently filing tax returns under another person’s name and Social Security number. Each year, credit unions and credit union members report these schemes impacting them even though the IRS has made significant progress in combating this type of fraud.

Despite this encouraging trend, credit unions should remain vigilant as taxpayer identities continue to be stolen in a number of ways including through data breaches and phishing scams. Since you are on the receiving end of the transaction – refunds via ACH credit or check – you can help combat this fraud by watching for these red flags:

  • Multiple tax refunds deposited to a member’s account
  • Incoming tax refunds via ACH credit where the name does not match the account number
  • Suspicious presentment of refund checks (e.g., double-endorsed checks), or a large number of refund checks deposited to a business member’s (e.g., a check cashing business) account

Log into the Protection Resource Center or keep up with RISK Alerts – both available exclusively to Bond policyholders – for additional mitigation tips and to become more familiar with ACH (Automated Clearing House) transaction rules.



CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group.
CUPRM-1704078.1-0217-0319

The Season for Fraud is Ongoing

Just because the holiday season is starting to wind down doesn’t mean that fraudsters are ready to take a break. They are always looking for new opportunities as consumers make more online and mobile purchases than ever before.

With unsuspecting members letting their guard down after their holiday shopping, fraudsters may strike in any number of ways. Credit unions can protect themselves in 2017 by following a few tips:

  1. Check your card parameter settings and current fraud rules.
  2. Implement strong authentication protocols and consider adding technology to score member interactions for risk if you don't already use it.
  3. Review all suspicious activity and confirmed cases of fraud as close to real-time as possible.
  4. Create fraud management rules to monitor and counter exhibited patterns of fraud.
  5. Validate CVV2 / CVC2 and Address Verification Services are used to ensure chargeback rights are preserved in a Card-Not-Present environment.
  6. Provide members with the ability to receive account alerts and promote its usage.
  7. Stay on alert for “friendly” fraud perpetrated by members.

Log into the Protection Resource Center or keep up with RISK Alerts – both available exclusively to Bond policyholders – to guard against fraud in 2017.

 


CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group.
CUPRM-1668311.1-1216-0119


Complacency can cost your credit union millions

Whether you believe your employees are all trustworthy or that you have strong internal controls in place, you may be unknowingly setting your credit union up for a devastating loss down the road. Losses include embezzlement, theft of vault or teller cash, account and expense manipulation, or fictitious/unauthorized loans.

Generally, employees who have a need, an opportunity, and who can rationalize their actions are the ones who commit internal fraud. Why learn the hard way? Take the self-assessment below to discover where you may be vulnerable.

Self-Assessment Questions:
  • Are you checking and verifying previous employers, references, and performing criminal background and Bondability checks for new hires and volunteers?
  • Do you have zero tolerance in a Fraud Policy Statement?
  • How are you proactively monitoring employee warning signals?
  • Have you implemented dual control over vault cash, currency shipments, ATM / teller cash replenishments, and cash dispensers?
  • Are vault cash, cash drawers, and ATMs subject to frequent surprise audits?
  • Are transactions initiated by tellers or vault tellers before and after a surprise cash audit?
  • Are sound controls used to monitor expense and general ledger accounts?
  • Is a whistleblower policy in place to encourage staff to report incidents?

You can also do a deeper dive self-assessment evaluating your internal processes >>




Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group.
CUPRM-1540425.1-0716-0818

New Department of Labor's OT Rule in a Nutshell

According to the new Department of Labor’s overtime rule—effective December 1, 2016—exempt employees who meet the duties requirement and make less than $47,476 ($913 per week) need to be paid overtime rates if overtime hours are worked. Overtime rates are time-and-a-half for every hour worked over 40 during a workweek.1

Violators of the overtime rules can be prosecuted criminally, fined, and even result in imprisonment. In addition, violators will likely face reputational risk, back wages, and potential retaliation claims which could also have punitive damages if proven.
Initial Steps toward Compliance

  • Conduct an audit of your workforce to determine who and how many employees will be affected by the new rules.
  • Review the status of employees carefully to ensure employees are correctly classified.

For additional details on how to mitigate this risk for your credit union, login to the Protection Resource Center and review this RISK Alert: Overtime Pay Rule Is In and the Clock Is Ticking

 


1 United States Department of Labor, Final Rule: Overtime, May 2016. CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group. Some coverages may not be available in all states. If a coverage is not available from one of our member companies, CUNA Mutual Insurance Agency, Inc., our insurance producer affiliate, may assist us in placing coverage with other insurance carriers in order to serve our customers’ needs. CUNA Mutual Group, 2016 All Rights Reserved.
CUPRM-1581677.1-0816-0918

Overlooking extra expenses could cost you

Extra Expense is the necessary extra costs you incur to minimize the suspension of your business and allow you to continue operating your credit union as close to normal as practicable, after a covered loss.

Here are some things to consider:

  • The loss as a worst case scenario.
  • The politics and ordinances that could impact your recovery timeline.
  • The construction timeline for building a better and newer building, especially considering weather delays, building code issues, and demand for resources.
  • Due to the high volume of equipment requests from other businesses and a limited supply in a disaster zone, increased costs can be associated with the necessary construction equipment.

Use our Coverage Calculator to identify potentially risky coverage gaps >>



Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group.
PBL-1547664.1-0716-0818

Streamline with New Credit Union Protection Support Page

This new online solution serves as a one-stop shop for all credit union staff. Whether you're new to CUNA Mutual Group or just looking for information and support related to your credit union protection policy, you now have access to the new CUP Support page. Now live on MyServices, this easy-to-navigate resource provides policyholders with access to:

  • Insurance and policy coverages.
  • Insurance claims.
  • Risk management.
  • Tools and resources.
  • CUNA Mutual Group contacts.


CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group. CUP-1562874.1-0816-0918

Your Weakest Links

It's probably not all that surprising to you that employees can be a significant cause and often the beginning of a much bigger cybersecurity threat. Getting hooked on a phishing attempt is one way that cyber thieves use employees to intrude an organization’s systems or break through normal security procedures.

Just a reminder that there’s a great deal of power that can be handed over to cyber thieves simply by using weak and easily guessable passwords. According to SplashData, a staggering two million passwords are leaked annually.1

  1. 123456
  2. password
  3. 12345678
  4. qwerty
  5. 12345
  6. 123456789
  7. football
  8. 1234
  9. 1234567
  10. baseball
  11. welcome
  12. 1234567890
  13. abc123
  14. 111111
  15. 1qaz2wsx
  16. dragon
  17. master
  18. monkey
  19. letmein
  20. login
  21. princess
  22. qwertyuiop
  23. solo
  24. passw0rd
  25. starwars

CUNA Mutual Group Bond Policyholders have access to a multitude of risk management tools and resources to help better protect your credit union. Go to the Protection Resource Center to learn more.




1Worst Passwords of 2015, SplashData, January 2016
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group. Some coverages may not be available in all states. If a coverage is not available from one of our member companies, CUNA Mutual Insurance Agency, Inc., our insurance producer affiliate, may assist us in placing coverage with other insurance carriers in order to serve our customers’ needs.
CUPRM-1502652.1-0516-0618 © CUNA Mutual Group, 2016 All Rights Reserved