Trusted News for Credit Union Leaders
Credit Union Times
APRIL 12, 2017 | VOL. 28 | NO. 12 | CUTIMES.COM
Coping
With CNP
Fraud: Six
Tips
TINA OREM
torem@cutimes.com
year and a half ago, when the October 2015 EMV liability shift took place, another shift began — criminals started moving
from card-present fraud to card-not-present fraud.
“When we look at 2016 over
2015, we see around a 33% increase in successful card-not-present fraud transactions,” said
Kaleigh Simmons, who is director
of marketing at the Chicago-based
fraud analytics firm Rippleshot,
which recently analyzed hundreds of millions of transactions
over almost a full year of data from
multiple card issuers.
“It sort of continues to bump
up, month over month over
month,” she said.
Card-not-present fraud is still
a nagging problem for credit
unions and other card issuers, but
two pros in the trenches recently
shared their tips for dealing with it
in today’s post-EMV era.
Tip #1: Don’t get lazy. EMV
may have stymied card-present
fraud, but card-not-present fraud
is rising and it may get worse
before it gets better, Simmons
warned.
“Occasionally, we talk to issuers
who feel they don’t need to
PAYMENTS
Y18
he NCUA is embroiled
in a court battle with
CUMIS over its contro-
versial decision not
to pay a $3 million dollar fidel-
ity bond claim after a forensic
auditor determined a CEO’s em-
bezzlement scheme caused a loss
of more than $10 million that col-
lapsed a Little Falls, Minn., credit
union.
While this case has not been
settled yet, legal and credit union
experts say it can offer key takeaways for executives to protect
their credit unions.
Moreover, related to this, the
NCUA v CUMIS legal dispute is a
civil lawsuit that the NCUA filed in
January against the former CEO of
the $51 million St. Francis Cam-
pus Credit Union, Margurite M.
Cofell. The lawsuit alleges that
the 60-year-old woman of Little
Falls, Minn., embezzled $2.8 mil-
lion over 15 years. However, Cofell
allegedly began stealing in the
mid-1990s from the credit union,
which led to a total loss that likely
exceeded $10 million, according
to a forensic auditor’s report filed
with the lawsuit.
Last month, a federal judge denied a summary judgement motion filed by CUMIS to rescind a $3
million fidelity bond claim policy
agreement, which insured theft by
employees. Both CUMIS and the
NCUA have a May hearing
LEGAL
Battles Expose Fidelity Bond Issues
PETER STROZNIAK
pstrozniak@cutimes.com
Y17
FOCUSREPORT:
CUSOS
Shifting consumer attitudes, rising competition and more is motivating credit unions
to leverage their assets. Learn how one CUSO’s credit card portfolio investment
program allows them to do just that in this Focus Report. Y8
CULTURE
Consumer Experience
Faced with increasingly commoditized markets, more and more
insurance and financial providers
are launching customer experience improvement programs to
differentiate themselves.
However, there’s something
many of these companies don’t
yet realize: The vast majority of
their programs will fail.
In a survey of more than 1,000
companies by communications
provider Avaya, an astounding
81% indicated that their customer experience improvement programs had failed to deliver results.
Attention & Funding Needed
Those are a lot of companies
wasting a lot of time and a lot of
money on something that isn’t
working.
What’s worse, given how these
failures typically play out, companies end up losing more than
just their investment in a better
customer experience. They lose
credibility — in the eyes of their
employees and potentially even
their members.
Launched with great fanfare,
most of these programs are left
to die a slow death, starved for
funding and attention. What remains strong is the signal that
sends to their workforce —
con-firming the staff’s suspicions
that customer experience really wasn’t that important to the
company. These programs become yet another casualty in the
long line of corporate transformational changes that, in Y16
Must Reads
Training
Program Tips
Invest in your
people to drive
success. Y12
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Value
Strong partners
make CUs
stronger. Y11