CU InfoTECH 2008

Coming

November 13-16, 2008

New Orleans, LA

CU InfoTECH 2008

A credit union conference for IT Professionals. Join us in New Orleans for a comprehensive, crash course in what you'll need to know about IT issues and products in the coming year to ensure your credit union's future success.

The world of IT can seem overwhelming, but we're certain that our line-up of knowledgeable and accessible session leaders will put the "easy" in Big Easy!

CU InfoTECH Session Leaders

Technology Planning
Tom Glatt, Sr.
President/CEO Continental FCU

Mobile Banking: Evaluating the Needs and Solutions For Credit Unions
Rick Sirois, Services and Consulting Engineer

Sprint Business Solutions

Server Virtualization – Cost and Benefit
Bob Frank, Senior Vice President,

Information SystemsMid-Atlantic Corporate FCU

Biometrics ID 2009: Identification Management for Credit Unions
Bill Rogers, President/CEO

William Rogers & Associates, Biometric Digest Newsletter

Technology Solutions for the Security Function
Dana Turner, Security Practitioner

Security Education Systems

Emerging Trends in Credit Union Technology and Delivery
Quintin Sykes, Managing Director

Cornerstone Advisors, Inc.

.

For agenda and more information, click here.

For reservations, click here.

To obtain a conference brochure, click here.

A credit union technology conference from CU Conferences & William Rogers & Associates, Inc. For information, call 1-888-465-6010.

Plate Flipper - License Plate Message Text

The Plate Flipper is a device that hooks to your car's license plate, allowing it to flip down, and reveal a special message for the guy behind you.Perfect for drivers in Los Angeles and Orange County who like to show off their vanity while weaving in and out of lanes in their BMWs.

I think what's needed is a programmable LED version, where at the push of a button you can display different messages. (Click on photo to enlarge)

I imagine it can also be used avoid paying tolls on toll roads, allowing you to evade the cameras.

Visit Plate Flipper online at...http://www.plateflipper.com/

How do CUs collect members' e-mail addresses?

Credit unions collect members' e-mail addresses primarily through teller incentives, according to a recent survey.

About 17% of respondents said they used teller incentives to collect e-mail addresses, compared with account opening practices at 13% and through the credit union's website at 13%.

"The optimal time to gather the e-mail address is right at the beginning of the relationship," said Rick Blaisdell, co-founder of MailMethods, the company that conducted the survey. "A best practice is to capture the e-mail address as early as possible in the relationship, even if the credit union does not have any current plans to use it."

Credit unions also obtain the addresses through signage in the credit union, direct mail and telemarketing, the survey said.

How to Spot a Hoax E-Mail

Several resources can tell you whether an e-mail claim you're interested in is a hoax. One is Hoax-Busters.org, which describes itself as the Big List of Internet Hoaxes; another is Snopes.com, which specializes in urban legends and hoaxes, and a third is Hoax-Slayer.com.

Check out any of these sites before you forward that next petition, chain letter, or crazy photo.
Hoax-Busters also has a list of the "5 Telltale Signs of an Internet Hoax" that might useful.

- The e-mail will have a sense of urgency about it, and probably a lot of exclamation points in it.

- The e-mail will insist that you tell all your friends.

- The text is adamant that this is "NOT a hoax."

- It will earnestly inform you that there are dire consequences for not participating.

- It probably is full of >>>> marks, showing that it has fooled a lot of people before you, and has been forwarded all over the planet. Don't add any more!

If you must forward something, try this: The Federal Communications Commission's list of the Top 10 Spam Scams.

..

New phone scams hit CUs in Alabama and Virginia

Add Alabama and Virginia credit unions to the growing list of credit unions throughout the nation whose members are being hit with vishing (voice phishing).

Heritage South CU, Sylacauga, Ala., warned Talladega County residents earlier this week of a phone scam in which an automated system asks for credit and debit card information (The Daily Home Aug. 20). The scam began Monday evening.

The $66 million asset credit union told the newspaper it received an equal number of calls from members and nonmembers contacted by an automated system claiming to be Heritage South and saying their card had expired.

The recipients were asked to call a long distance number to reactivate the card and the bogus "Heritage South Security Center" would ask for the card number, PIN and the card's expiration date.

For more details, visit: http://www.cuna.org/newsnow/08/system082108-4.html?ref=hed

..

Best 'Out of Office' Automatic Email Replies

1. I am currently out of the office at a job interview and will reply to you if I fail to get the position. Please be prepared for my mood.

2. You are receiving this automatic notification because I am out of the office. If I was in, chances are you wouldn't have received anything at all.

3. Sorry to have missed you, but I'm at the doctor's having my brain and heart removed so I can be promoted to our management team.

4. I will be unable to delete all the emails you send me until I return from vacation. Please be patient, and your mail will be deleted in the order it was received.

5. Thank you for your email. Your credit card has been charged $5.99 for the first 10 words and $1.99 for each additional word in your message.

6. The email server is unable to verify your server connection. Your message has not been delivered. Please restart your computer and try sending again. (The beauty of this is that when you return, you can see who did this over and over and over...)

7. Thank you for your message, which has been added to a queuing system. You are currently in 352nd place, and can expect to receive a reply in approximately 19 weeks.

8. Hi, I'm thinking about what you've just sent me. Please wait by your PC for my response.

9. I've run away to join a different circus.

10. I will be out of the office for the next two weeks for medical reasons. When I return, please refer to me as 'Lucille' instead of Steve.

Shared branching key in disaster recovery, says CU

With hurricane season under way, a New Orleans-based credit union is reminding credit unions that preparation is key in providing uninterrupted account access to members during an emergency, and that shared branching can play an important role in business continuity.

New Orleans Firemen's FFCU (NOFFCU) encouraged credit unions to become part of a shared-branching network. When Hurricane Katrina battered the Gulf Coast in 2005, NOFFCU turned to CO-OP Shared Branching for assistance. While NOFFCU's offices were closed, it directed members to shared branches to get the money they direly needed. Those branches are still used by members today.

"After the storm, many members were permanently scattered outside of our proprietary branch network," says Cami Crouchet, chief operating officer of NOFFCU. "We expected a decline in membership, but instead our numbers remained flat," she said.

Read more about shared branching at: http://www.cuna.org/newsnow/08/system081908-3.html?ref=hed

When Do Airlines Change Their Ticket Prices?

Domestic U.S and Canada Airfare Distribution

Domestic U.S. and Canadian airfares are distributed to subscribers (reservation systems) on the following schedule and are loaded approximately 2-4 hours after distribution into reservation systems (except on FareCompare.com which sends out free airfare email alerts immediately):

> Weekdays - 3 times daily at 10:00am, 12:30pm and 8:00pm Eastern Time

> Weekends - 1 time daily at 5:00pm Eastern Time (loaded after Midnight the next day into reservation systems)

International Airfare Distribution

International airfares are distributed to subscribers (reservation systems) on the following schedule and are loaded approximately 4-8 hours after distribution (except on FareCompare.com which sends out free airfare email alerts immediately):

> Weekdays - 5 times daily at 1:00am, 5:30am, 11:00am, 3:00pm, 8:00pm Eastern Time

> Saturday - 2 times at 5:00am and 5:00pm Eastern Time

> Sunday - 2 times at 5:00pm and 8:30pm Eastern Time

Phishing Casts Spam By The Millions

By personalizing phishing emails impersonating the University of Otago, spammers managed to obtain the passwords of four staff members, whose accounts were used to send 1.5 million spam emails in 60 hours.

The spammers didn’t just abuse the clean IP reputation of the University, they also had its mail servers blacklisted thereby causing a DoS attack to its staff and students.

For more, visit: http://blogs.zdnet.com/security/?p=1723&tag=nl.e539

...

Credit Union Boards Experiencing "CEO Sticker Shock"

Credit union boards replacing retiring baby boomer CEOs are experiencing major sticker shock, according to one of the industry’s leading staffing firms.

“Within the last five years we’ve seen our industry leaders start to retire, and big credit unions merge, and credit unions that haven’t had to recruit a CEO in years are looking at executive compensation packages today and doing double takes,” said Susan Mitchell, CEO of O’Rourke, Mitchell and Associates.

Tenured executives, increasing size and complexity of credit unions, and generational gaps all play a part, she said. Sometimes the disparity between retiring and incoming CEO pay is so large, it creates feelings of resentment for the outgoing leader.

“Retiring CEOs put in years building trust with their boards,” Mitchell said, “and for their replacement to come in and ask for that much money…and get it…almost goes against the grain of boomer thinking, that you should work your way up.”

Mitchell said today’s new CEOs want a market-driven core salary, additional “at risk” pay which is based on key performance measurements, and a competitive retirement plan. Executives also typically receive a company car, and some credit unions are assisting in relocation, given today’s economy and real estate market.

More CUs report phishing, vishing scams

Several more credit unions reported that they have been fraudulently used in phishing and vishing scams that target consumers:

>> E-mails were sent to Vermont residents by scammers purporting to be from Vermont State Employees CU (VSECU), a $366 million asset, Montpelier, Vt.-based credit union, informing consumers of attempts to steal their personal information by compromising their credit card accounts. The e-mail tells recipients to call a Vermont phone number and asks them for their 16-digit credit card number to reactivate their card. Exploiting the public's increasing knowledge of scams, the e-mail even uses a copyright notice from VSECU at the bottom of the e-mail (The Barre Montpelier Times Argus Aug. 5).

>> Fraudsters posed as officials from Chesterfield (Va.) FCU, a $52 million asset credit union. The scam began with automated phone calls and then progressed to e-mails--all claiming to come from the credit union. Respondents were given a phone number to call and asked for personal information. In some instances, the phone number was toll free; in others, the phone connection went to Iowa and Oregon. The scam targeted members and nonmembers (Richmond Times-Dispatch Aug 6).

>> In a scam known as spoofing, thousands of members of Langley FCU, a $1.224 billion asset, Hampton, Va.-based credit union, received telephone calls Friday afternoon, with a recording asking them to call an 877 number that appeared to be from the credit union. When members called the number, they were asked for personal information such as a personal identification number for an account. The phone number has been deactivated by the phone company, according to the credit union (WAVY.com Aug. 3).

>> Scammers targeted members of Three Rivers FCU, a $455.5 million asset, Fort Wayne, Ind.-based credit union, with a recorded message telling them to call in because security at the credit union had been breached. Once connected, the respondents are told to press "1" and enter their account number, making the information available to identity thieves. The credit union warned members that its security has not been compromised and that they should not respond to the recording (The Journal Gazette Aug. 6).

A fraudulent e-mail that appeared to be from the National Credit Union Administration (NCUA) that was sent to various credit union members provided a link to a mock-up of the NCUA website. Recipients were asked to provide credit card information and other personal data (Targeted News Service July 29).

11 charged in TJX, BJ's Wholesale Club breaches

Eleven people have been charged with stealing more than 40 million credit and debit card numbers obtained from TJX Cos., BJ's Wholesale Club Inc., and seven other retailers.

They were indicted Tuesday, in what the Justice Department calls the largest, most complex identity-theft case ever prosecuted (ComputerWorld.com, CNNMoney.com and Bloomberg.com Aug. 5).

Thousands of credit unions and their members were among those impacted in the thefts. Credit unions and other financial institutions were forced to reissue compromised cards and endure costs related to fraud. Some of the breaches sparked lawsuits by credit unions and by their insurance companies.

The identity theft ring targeted nine U.S. retailers, including TJX, BJ's, DSW Shoe Warehouse, Office Max Inc., Boston Market, Barnes & Noble Inc., Sports Authority, Forever 21, and Dave & Buster's restaurants.

More information at: http://www.cuna.org/newsnow/08/system080508-9.html?ref=hed

Credit Union Mobile Banking Projected to Rise

Mobile banking adoption by credit unions continues to trend upward, with the majority of credit unions surveyed in Callahan’s 2008 Technology Guide planning to invest in mobile banking technology over the next two years. Overall, about one-tenth of responding credit unions reported that they currently offered some type of mobile banking. However, about one-third of respondents did not currently offer mobile banking and anticipate no investments in mobile technology in 2008/2009.

Out of the Gate: No Clear Cut Technology WinnerCredit unions are split between adoption of WAP/browser-based mobile banking programs and SMS/Text messaging programs. While fewer credit unions mentioned plans for downloaded software, adoption of this technology may increase as more carriers implement pre-loaded software on their mobile phone options.
Some of the front-end issues that credit unions need to consider when selecting a technology include:

- Level of security: fraud and multi-factor authentication
- Compatibility with other systems such as online banking
- Desired transaction capabilities
- Member interest and need for information vs. transaction capabilities
- Local carrier considerations: compatibility with dominant local carriers
..




More information is at: http://www.creditunions.com/home/articles/template.asp?article_id=2674

Embezzelment: Hands in the Cookie Jar

What do the numbers $36,000, $41,000, $48,000, $900,000, and $1,500,000 have in common? They’re amounts (allegedly) stolen by credit union employees in pending or resolved cases of embezzlement since the end of May.

With internal auditing procedures in place, staff to enforce them, a Supervisory Committee to enforce them, and state and federal auditors to ensure the credit union’s general ledgers (among other things) are in order, embezzlement is still very real, and more common than most would like to admit.

Mentioning embezzlement is akin to blurting out a four letter word in most credit unions, because one misspoken word may inadvertently cause the rank and file to believe they are unfairly being targeted, thereby creating trust issues. However, it should be included as part of a larger discussion regarding adherence to internal procedures, which is (hopefully) happening on a regular basis.

A good discussion a few times each year may help deter a desperate employee (with any title, including CEO) from making a life altering decision, and may even expose any potential loopholes that staff has discovered in their daily routines. [Read story at Christian Mullins].

Sorta gives new meaning to the terms Low Rider, High Tide & Full Moon... Not to mention Crack Kills

Two CUs sweep CUNA Tech Council awards

Technology CU and Purdue Employees FCU were honored as winners of the 2008 CUNA Technology Council Best Practices Awards at the council's 13th annual summit, which took place Wednesday through Saturday in Williamsburg, Va.

The awards recognize outstanding approaches to technology challenges with potential for universal application across the credit union movement. The winning credit unions presented the details of their success stories to conference attendees in the following categories:

>> Technology Infrastructure--Technology CU, San Jose, Calif., for its job-applicant tracking system for all internal and external applications, advanced reporting features, and more. A new job-listing site provides a user-friendly interface for applicants, and allows human resources to quickly and efficiently track applications without using paper. The credit union received more than 12,000 applications and resumes and posted and filled 170 job openings. The new system was such a success that credit union plans to extend a 100% paperless system to the entire recruiting process;

>> Sales Management--Purdue Employees FCU, Lafayette, Ind., for creating a new sales reporting model with a member service measuring tool to help the credit union meet its goal as members' financial partner for life. The sales staff now can follow up more quickly with members who express interest in specific products. Attempted cross sales are up nearly 300% from 2007. The new reports also help analyze productivity, contributions to specific corporate measures, monthly trend data, and branch production; and

>> Miscellaneous--Technology CU, for its online banking feature enhancement and new splash page to promote eStatement and electronic disclosures. The new business strategy included splash pages, with a disclosure agreement that requires members to opt out from all paper statements, electronic privacy notices, and any future notices electronically as they become available. One month after the launch, the number of eStatement enrollments realized a 63% increase. The program will have a big impact on cost savings over paper statements and will help the credit union "eSave the planet," Technology CU said.

CUNA Technology Council announces board members, officers

The executive committee and officers of the CUNA Technology Council were announced during the council's 13th annual summit, which took place Wednesday through Saturday in Williamsburg, Va.

Rudy Pereira, senior vice president of operations and technology of Alliant CU, Chicago, was named chair. He replaces Brian Warfel, executive vice president of sales and service at Power Financial CU, Pembroke Pines, Fla. Warfel reached his term limit as chair but remains on the executive committee.

Jackie Buchanan, chief information officer of T&C FCU, Pontiac, Mich., was appointed first vice chair. She supersedes outgoing member Gail Koehler, vice president of technology and retail delivery, Purdue Employees FCU, West Lafayette, Ind., who completed her term.

Gordon Gregory, vice president of technology for Mazuma CU, Kansas City, Mo., is the second vice chair.

CU Phone, e-mail scams move westward

Several phone and e-mail scams that have affected credit unions in the eastern part of the U.S. are now moving westward.

Some credit unions experiencing scams are:

> UW CU, Madison, Wis., whose members are targets of a hybrid e-mail/phone scam. An e-mail reads: "All UW credit union accounts were recently updated with a new security enhancement. For your security, we have temporary suspended your account." The e-mail mail then provides a bogus 800 number to call to reactivate the account. The UW CU sent a message telling members to never access the credit union site by clicking on a link provided in an e-mail, and that the credit union will never solicit personal or financial information in this manner.

>> Oregon Community CU, Eugene, Ore., which said scammers call its members on their home and cell phones, telling them that there is an issue with their accounts (kezi.com July 31). The scammers are deploying an automated service that asks members to give person information over the phone. The credit union told members not to respond if they receive one of these calls.

>> Kitsap CU, Bremerton, Ore., which received hundreds of calls last week about scammers attempting to get members' credit and debit card information (Kitsap.com July 31). The credit union said an unknown entity was blanketing the 360 area code with calls telling people that their credit or debit cards were suspended. Kitsap CU is one of the financial institutions the callers claim to represent. The credit union received 200 calls about the scam in a 15-minute period Thursday afternoon, said Ron Rogerson, Kitsap senior vice president of marketing. Kitsap CU reported the scam to companies that issue the cards, Bremerton Police, and the state attorney general's office, Rogerson added.

>> The TVA Employees CU, Knoxville, Tenn., issued a security alert regarding a phishing e-mail scam that attempts to solicit personal financial information from members. The e-mail tells members to call a phone number to update financial information. The credit union notified members that it will not use e-mails for confidential account notifications.

Travelers’ laptops may be detained at border

Federal agents may take a traveler's laptop or other electronic device to an off-site location for an unspecified period of time without any suspicion of wrongdoing, as part of border search policies the Department of Homeland Security recently disclosed.
Read more at: http://www.msnbc.msn.com/id/25960741/

EDS shareholders approve HP merger; EDS shoots down layoff rumors

EDS said Thursday (7/31) that shareholders have approved the HP acquisition of the IT services company. Internally, rumors about impending layoffs at EDS are surfacing, but a company spokesman called the rumors “completely factually incorrect.”

According to a statement, 98.8 percent of EDS common stock was voted for the HP deal–that equates to 72.4 percent of the outstanding shares.

While all of this news is good from the corporate perspective, EDS employees have been skittish. Rumors on Wednesday began percolating among EDS technology managers that the company is planning on laying off 20 percent of its workforce across all hubs in the Americas. As noted previously EDS said the rumors are incorrect. On Wednesday, EDS said it would not comment on the rumors, but moved to squash them Thursday.

EDS was once the leader in technology services to credit unions when it acquired CUNADATA in 1981 followed by a series of acquisitions of various credit union processors across the country. EDS left the credit union market several years ago.