June 2022 Compliance Vault

Crypto Scams Top $1Billion

The latest FTC Data Spotlight shows scammers are taking advantage of the buzz and nature of cryptocurrency.

Black Box Lending Concern

The CFPB reminds financial institutions that fair lending concerns exist, even when decisions involve algorithms.

SEC Assesses BSA Fines

A recent blog details how a bank missed SAR filings after not adequately testing an AML software update.

Wells Fargo Zelle Suit

The national bank faces a class-action lawsuit over allegations it didn't properly handle Reg E claims after Zelle losses.

NCUA Letter on DLTs

The agency recognizes new technologies may transform traditional financial operations with distributed ledger technologies (DLT).

Bond Redemption Scams

CUNA Mutual Group RISK Alert explains why staff should always use Treasury's verification tool to avoid losses.

Elder Fraud Month

On June 15, we will recognize World Elder Abuse Awareness Day. The day promotes a better understanding of the abuse and neglect of older persons. Credit unions see financial abuse and exploitation regularly, and you can access tools to assist your teams in recognizing, reporting, and stopping the losses.

Below are a few steps to consider:

Scam Checklist. Asking questions of older members who are involved in large-dollar transactions can be awkward, but it might also save them losses, financial hardship, and help protect their pride and assets. This checklist provides some good information on areas to ask about, as well as other ways members can protect themselves from scammers.
Train Staff. Montana has unique laws that can assist in delaying transactions and reaching out to other family members when you suspect a member over 60 is being taken advantage of. Use our Compliance Training Tools page (Elder Financial Exploitation section) to access pre-recorded webinars and links to resources. Regular training also provides liability protection to your credit union if red flags are missed.
Report Fraud. In addition to guidance from federal regulators that encourages reporting, the National Elder Fraud Hotline offers free help to people age 60 and older who may have been victims of financial fraud. They can reach the hotline by calling 833-FRAUD-11 (833-372-8311) between 8 a.m. to 9 p.m. MT seven days a week. Credit union employees who suspect a member is being taken advantage of can call it too.

And Another CUCE!

Congratulations to Courtney Tonna at Sky FCU on earning her Credit Union Compliance Expert (CUCE) designation last month! Since Courtney joined the Sky team in January, she has been working hard to learn as much as possible in her new role as Internal Auditor/Compliance Specialist. Studying and testing for the CUCE allowed her to increase her knowledge and apply the information to her daily work.

Whether you might be interested in attending CUNA's fall Regulatory Compliance School to earn your CUCE or doing the e-school program, let me know when you finish so we can celebrate your accomplishment!

A Few Thoughts...

Do you have a "culture of compliance" at your credit union? A recent KnowBe4 blog had some interesting points that might resonate with you. The following statement was made in reference to IT and security (but could apply to any department within the credit union). "We just provide assistance and materials where we can. No consultant, audit, or even training provider can make enough of a difference to make an organization have a strong culture of compliance." The culture often starts at the top, so consider bringing concerns or ideas to your next position or department review and see where it might lead.

On a personal note, I will be out on vacation this month from June 20 - July 1 and not available via email. While the respite is needed, I know your compliance questions and issues don't take a break. Keep our InfoSight resource in mind for nearly any topic at the state or federal level and don't underestimate how helpful your peers at other credit unions can be. You can find a current directory here. I hope you also get to enjoy some time away from your desk this summer!

~Donya