Mon, Aug 4, 2014
In an effort to help credit unions detect and deter fraud, the National Credit Union Administration has released the first videos in a new series on fraud prevention.
The agency has posted the first three videos on its YouTube channel, with the remaining four to be released in the coming weeks.
"The potential for employee fraud should always be a concern for credit union officials and volunteers," NCUA Board Chair Debbie Matz said in announcing the new resource.
"Unfortunately, employee fraud led to $311.4 million in losses for the Share Insurance Fund between 2010 and 2013 at liquidated credit unions. To protect the Share Insurance Fund from future losses, NCUA has developed this new video series to educate credit union managers and volunteers about detecting and reducing the potential for fraud and dishonesty among employees," she added.
The series, conducted by staff from the NCUA's Office of Small Credit Union Initiatives in partnership with CUNA Mutual Group, discusses ways credit unions can increase internal controls to deter insider fraud and employee dishonesty. Credit union managers and volunteers will also learn how to identify potential clues that are warning signs for fraud.
The first three episodes of the "Deterring, Preventing and Detecting Employee Dishonesty" series provide an overview of the series and outline the importance of maintaining a policy on employee fraud and conducting surprise cash counts.
Joette Colletts, senior manager for risk management with CUNA Mutual Group, is featured in the videos taking a credit union CEO through various phases of fraud prevention and explaining why each one is essential to an overall prevention strategy.
The NCUA will release the remaining four episodes in the coming weeks, which will address separation of duties, employee and family member accounts, file maintenance transactions and vault cash.
Source: CUNA News Now