In July 2013 the CFPB issued the final interpretations for changes to Regulation Z precipitated by the Dodd Frank Act, which requires financial institutions to provide a monthly statement to members who have closed-end mortgages. (The specific addition can be found in Section 1026.41, excerpts from which are quoted in the body of the announcement.) […]
News
It’s Never Just The One Event
Over the course of the last few years, the AuditLink team has been involved in a number of investigations related to both member and employee fraud and theft. In almost every circumstance, it was not just one activity that led to the loss associated with the fraud situation. Take, for instance, the situation where an employee […]
CU*Answers Releases White Paper Assessing the Risk of DDoS Attacks
CU*Answers, the 100% credit union-owned, cooperative CUSO headquartered In Grand Rapids, MI has published a white paper focusing on assessing the risk of Distributed Denial-of-Service attacks (DDoS). The white paper was developed in conjunction with AuditLink, an auditing and compliance division of CU*Answers Managed Services. The document fully describes a DDoS attack and what credit […]
AuditLink’s Top Ten
Following is the list of suggested projects—affectionately referred to as AuditLink’s Top Ten which have made it to my radar and are currently being discussed here at CU*Answers. You’ll notice a few that are well along in development and nearing implementation, while others are still in the early stages of design. And some of these […]
1. ALM Download Enhancements
Activity – You’d like to get more out of your ALM relationship, but the amount of data they originally requested does not give them what they need to provide you with a more robust set of reports. Solution – In 2011 we reached out to a number of ALM proiders, asking them to partner with […]
2. BSA Enhancement: Joint Owner Activity
Activity – Member avoids currency transaction monitoring by depositing cash into multiple accounts, some on which the member is the primary account holder and others as only a joint owner. Solution – Enhance the BSA monitoring feature to enable account tracking on every account connected to the Social Security number of every member, regardless of […]
3. Check Cashing Function
Activity – Member comes in to cash a check and the teller uses the check cashing function which does not write out a transaction on the member’s account. Four issues: First, in most states this is prohibited on business accounts. Second, when reviewing BSA activity the auditor must also review the teller audit log. Third, […]
4. Critical Field Monitoring
Activity – Currently credit unions must review the file maintenance logs to determine if the changes made to member accounts were completed correctly and with the proper authority. Solution – Create a screen where the credit union could chose up to 15 different critical system fields which currently show on the file maintenance log. At […]
5. BSA Log Management for Exempt Members
Activity – You are reviewing your BSA daily log and you believe one of the members listed is exempt from filing but your are not sure. In order for you to determine if you need to file a CTR you must go out to the Update Membership info screen and determine if the flag has been […]
6. Identity Theft
Activity – Member has not had any debit card or credit card activity (primarily Visa) for an extended period of time. A sudden onslaught of transactions in extraordinarily large amounts are one clue that this is identity theft. This activity has the potential for both loss of the card and card information. With the stolen […]