Metvante Bill Paying Fuels Credit Union Fee Income; Members Paying Through the Nose

We recently came across a situation where an individual received a check from Metavante, a credit union’s bill paying service, on which payment had been stopped. The individual receiving the check routinely deposited it in his credit union. A few days later he received a notice that payment had been stopped and he was being assessed a $10 fee as a result. The problem is there was insufficient funds in the members account at the issuing credit union on the date the check was issued.

Now, the big question is “Why did the credit union or Metavante even issue a check knowing there was insufficient funds in the account?” This puts the CU and Metavante in a very negative light especially with the person receiving the check. Should this person “trust” future checks from Metavante?

Every person we put this question to has expressed surprise . . . and shock in some cases.

A chat with the Credit Union official says that’s how the Metavante program works and that it worked well. Metavante says “no comment.”

We think we have a finger pointing situation here on a poorly designed service whether it’s the Credit Union’s fault or Metavante. When the check bounced the first time, a fee of $25 was assessed. Metavante processed the bad check a second time resulting in a second fee of $25. It’s interesting to note that when the Metavante check was presented for payment, there were sufficient funds in the member’s account to clear the check.

So here we are. Metavante says it’s the credit union’s policy. The Credit Union says “that’s the way the program works.” The member is out $50 bucks. The bill paying recipient is out $10.

Industry consultants say 10% to 20% of households generate the bulk of overdraft income. The households hit hardest by overdrafts pay an average of $1,374 a year in fees, estimates G. Michael Flores, founder of Bretton Woods, a management advisory firm that works with financial institutions.

If consumers overdraw on a $20 debit card or bill paying transaction, are charged the median fee of $27 and repay the credit in two weeks, they're effectively paying a 3,520% APR, according to the Federal Deposit Insurance Corp.

Robin Rutan, of Glenwood Springs, Colo., says her local credit union pays transactions that overdraw her account by a few cents, without her permission, and charges her $27.

Here is what some firefighter credit unions do.

Charlotte Fire Department Credit Union uses IPay. They receive a file from IPay for posting. If an account does not have sufficient funds, the credit union has an option to post or not post the transaction and determines if a fee should be assessed . . . but no check is issued if funds are not available.

Houston Firefighters Fed. Credit Union says if a member does not have the funds to cover the check, they do not pay it. They also do not charge a fee. If the member signs up for e-mail notification, we will e-mail them that we did not pay the bill. We will try again for the next two of days and then stop.

San Francisco Fire Credit Union says,”If a member has scheduled a payment and there are no funds in the account we do one of two things: 1) We offer courtesy pay up to $750 so if the bill does not take them over that limit, we will issue the payment (97% of all online bill payments are process electronically so no checks are cut) and charge the member a fee.

2) If they either opted out of courtesy pay or are over the limit for courtesy pay we will retry for 3 days and post a message in home banking letting the member know we can’t process the payment – no fee.”

San Diego Firefighters Fed. Credit Union uses IPay. The Credit Union will pay the bill so long as the member has direct deposit and charge them a courtesy pay fee of $22. This is only good for bills up to $1,500. If the bills total over $1,500, they will not pay but return to IPAY. They will then notify the member via e-mail that the bill was not paid due to insufficient funds.

What does your Credit Union do? Share with us who your bill payment processor is. Do they issue checks and then stop payment on them? What is your policy regarding fees and insufficient funds? Send to billrogers@swbell.net. Also, note that Metavante is now part of FIS.

Airport Deals for You And Your Car

Hate having to get up at an ungodly hour for an early-morning flight, drive to the airport in the dark, park your car, then dash to the terminal? Here's one way to cut the hassle and get a good night's sleep. Consider a package deal that includes an airport hotel for the night before your flight, seven to 14 days of parking, and a shuttle to and from your gate-all costing not much more than parking alone.

ParkSleepFly.com is a one-stop shopping site where you can compare the rates and amenities of hotel brands, giving you a choice of more than 1,500 airport hotels in 129 cities in the United States and Canada, and even a few in Europe. Similar sites are Stayl23.com and ParkingAccess .com.

New rules for fee-depleting gift cards

Gift cards have become so popular, given to or by 95 percent of Americans, angering so many of them with unexpected fees and timing-out deadlines, that the Federal Reserve has stepped in with some new rules.

Have you ever found a gift card tucked away only to pull it out and use it and find that all but $3.25 cents of it has been eaten up in fees? I'm not exaggerating. My kids get lots of gift cards as gifts, and because they are not the best at keeping track of such things, this kind of thing has happened around here. So it's good to hear about these changes, though don't expect them to put an end to all fees on gift cards.

Here's what the Fed says will happen as of August 22:

>  Consumers must have at least five years to use gift cards before they expire.

>  However, service or inactivity fees can still be applied, under certain conditions --

>  if the consumer hasn't used the card for at least a year

>  if the consumer is given clear disclosures about them, and

>  no more than one fee is charged a month

Some better. But it's still buyer beware you may be giving a gift that won't be fully used, and recipient remember to use your gift cards! Right away!

Airports to get whole body imagers

Reported by a brokerage firm, 3/25/10

Whole Body Imagers Order Expected: The TSA has a goal of deploying approximately 1,000 whole body imagers in airports by the end of 2011, and another order is expected to come down in the next 30 – 60 days. We believe this order will be for around $50 million, and will be split between the two companies currently certified to provide systems to the TSA, OSI and L-3.

LifeLock to pay $12M in false-claims settlement

LifeLock Inc. has agreed to pay $11 million to the Federal Trade Commission (FTC) and $1 million to a group of 35 state attorneys general to settle charges that the company used false claims to promote its identity theft protection services.

It is one of the largest FTC-state coordinated settlements on record, said FTC. LifeLock and its principals will be barred from making deceptive claims and required to take more stringent measures to safeguard the personal data they collect from customers, FTC said.

The company and its co-founders, Richard Todd Davis and Robert J. Maynard Jr., are barred from misrepresenting the "means, methods, procedures, effects, effectiveness, coverage, or scope of any identity theft protection service." The settlements also bar misrepresentations about the risk of identity theft and the manner and extent to which LifeLock protects consumers' personal information.

The settlements also require LifeLock to establish a comprehensive data security program and obtain biennial independent third-party assessments of that program for 20 years.

Since 2006, LifeLock's ads claimed it could prevent identity theft for consumers willing to sign up for its $10-a-month service, said the FTC.

The agency noted that LifeLock's fraud alerts on customers' credit files protected against only certain forms of identity theft and gave no protection against the misuse of existing accounts; that they did not protect against medical identity theft or employment identity theft; and that they could not provide absolute protection against new account fraud, where fraud alerts are most common.

Other claims made--that LifeLock could prevent unauthorized changes to customers' address information, that it constantly monitored activity on customer credit reports, and that it would ensure the customer always received a telephone call from a potential creditor before opening a new account--were also false, said FTC.

The FTC said it will use the $11 million it receives from the settlements to provide refunds to consumers. It will send letters to current and former LifeLock customers who may be eligible for the refunds, and instructions for applying.

Fingerprint The Same As Credit Card Theft?

By Ravi Das

You know what, today, I was going to start the same process for my daily writings as I always do. That is, look at the latest Press Releases, and decide what is important enough to report to my blog subscribers.

Once I pick a Press Release for the day, I then read it very thoroughly, and analyze the information from it.

As you have noticed, usually the first section is a summary of the Press Release, which is just usually the highlights. The second section usually contains my analysis of the Press Release.

Well, today I thought I would try something just a little different. I attend a lot of networking events here in the Chicago and surrounding areas to promote my newsletter, and other services.

A question I keep getting asked all the time: “What if my fingerprint is stolen”??? And in fact, I was just asked this question a number of times this morning.

Well, my usual answer is that yes, it is a form of ID Theft. But, put things in perspective. It’s not quite the same as Credit Card Theft. With a fingerprint, it’s not the actual fingerprint which is stored, just the mathematical representation of it.

So for instance, look at your fingerprint, and imagine a bunch of one’s and zeroes. That is what your fingerprint is to a Fingerprint Scanner, and what is stored. So, yes there is some possibility something bad could happen, but the chances are sort of remote.

Now look at your Credit Card. You will see the number, and if your card is stolen, yes, there is a lot of damage which can happen. At this point, after you discover your card is missing, hopefully you will contact your credit card company immediately.

So, the two are not exactly the same.

Well, in an attempt to further explore this topic, here is an editorial I wrote, specifically on this. It appears in one of the sample newsletters on my website, which is http://www.biometricnews.net/ .

Man could face felony for not giving bank back money

A man could face felony charges for refusing to give back money to a Cape Girardeau (MO) bank that claims a teller inadvertently gave the customer too much money. Police tell the Southeast Missourian they are still investigating the incident that happened Friday at the Bank of Missouri, but charges of stealing more than $500 are being considered. So far, no charges have been filed.

Police spokesman Adam Glueck says the man came to the bank to exchange a large stack of mixed bills for a stack of $20 bills, but the teller accidentally gave him substantially more than he was owed. The error was discovered after the customer left.

When the bank and police contacted the man, he refused to turn over the excess amount, saying he was given the correct amount. (What do you think his reaction would be if he was short-changed?

Do these people work for your credit union?

Do these people work for your credit union?

A woman at work was seen putting a credit card into her floppy drive and pulling it out very quickly.

When I inquired as to what she was doing, she said she was shopping on the Internet and they kept asking for a credit card number, so she was using the ATM 'thingy.'

---------------

Several years ago, we had an Intern who was none too swift. One day she was typing and turned to a secretary and said, 'I'm almost out of typing paper. What do I do?' 'Just use paper from the photocopier', the secretary told her.

With that, the intern took her last remaining blank piece of paper, put it on the photocopier and proceeded to make five 'blank' copies.

CUNA advises on 10 places not to use a debit card

There are 10 situations where consumers should keep their debit card in their wallet, according to CreditCards.com. periodicals, provides some of the advice.

Don't use a debit card online. Not using debit cards online was No. 1 on the list. Since the debit card links directly to a checking account, .

Most lists warn against letting a credit or debit card out of sight at a restaurant, but restaurants are one of the few places where the consumer must let the card out of sight to use it. Avoiding such situations isn't workable.

Some gas stations and hotels will place holds to cover customers who may leave without settling the entire bill.

That means that even though the consumer bought only $10 in gas, the hotel can have a temporary banking hold for $50 to $100/ The practice isn't as noticeable if paying with a credit card but can be problematic for debit card users with just enough funds in the account to cover the purchase.

Don't use debit cards for:

1. Online;
2. For big-ticket items;
3. When a deposit is required;
4. At restaurants;
5. If you're a new customer;
6. When you buy now and take delivery later;
7. For recurring payments;
8. For future travel;
9. At gas stations and hotels; and
10.When the ATM looks "off."

Technology Made Me Do This

Data Breach Incidents Cost U.S. Companies

The Ponemon Institute released a study last month which examined 43 organizations across 17 different industry sectors, showing that data breach incidents cost U.S. companies $202 per compromised customer record in 2008, compared to $197 in 2007.

Since the study's inception in 2005, this cost component has grown by more than $64 on a per victim basis, nearly a 40% increase.

Convictions for Major Hackers

Albert Gonzalez, the convicted ringleader of a major hacking and thieving operation that cost credit unions millions of dollars, awaits sentencing by a federal court. But as he awaits his fate, the cases of his co-conspirators are being resolved, according to court documents.

The latest is Humza Zaman, 33, former network programmer for Barclay's Bank. Zaman pled guilty to being part of the back-end, money laundering part of the Gonzalez operation rather than the hacking part.

Prosecutors charged Zaman with helping Gonzalex repatriate American currency that purchasers of the stolen card data paid for the information.

“In late 2005 and early 2006, Zaman traveled to California at Gonzalez’s direction on approximately three occasions,” the prosecutors said in a memo, which supported their recommendation that Zaman serve 46 months in federal prison with other penalties.

“There, he met with an unknown man of apparent Eastern European descent. On each occasion, Zaman picked up between $50,000 and $370,000 in currency. Zaman then put the currency, minus his cut, in Federal Express boxes and shipped the money using a fictitious name to Gonzalez in Miami,” the prosecutors added.

In the end the court agreed with the prosecutors, sentencing Zaman to 46 months in prison and a fine of $75,000.

Online crime losses more than doubled in 2009

Online crime losses more than doubled during 2009, reaching $559.7 million, according to the Internet Crime Complaint Center (IC3). That compares with $265 million lost during 2008.

IC3 is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C).

The number of complaints also rose--to 336,655 complaints, or 22.3% more than the 275,284 complaints filed in 2008.

Complaints involved fraud and nonfraud categories including auction fraud, nondelivery of merchandise fraud, credit card fraud, computer intrusions, spam/unsolicited e-mail, and child pornography, said IC3.

In 2009, IC3 implemented a new complaint classification system, separating complaints into 79 categories. This resulted in a number of changes to the way the system gathers the data and classifies complaint data.

Among the significant findings for 2009:

> E-mail scams that used the FBI's name to gain information represented 16.6% of all complaints submitted. Nondelivered merchandise and/or payment accounted for 11.9% of complaints, advance fee fraud made up 9.8%. Rounding out the top five categories were identity theft and overpayment fraud.

> Of the top five categories of offenses reported, nondelivered merchandise and/or payment ranked 19.9%, identity theft, 14.1%, credit card fraud, 10.4%, auction fraud, 10.3%, and computer fraud (destruction/damage/vandalism), 7.9%.

> Of the complaints involving financial harm and referred to law enforcement, the highest median dollar losses were found among investment fraud ($3,200), overpayment fraud ($2,500), and advance fee fraud ($1,500).

>Among complainants, 54% were male, nearly two-thirds were between the ages of 30 and 50, and more than one-third resided in either California, Florida, Texas or New York. Ninety-two percent of the complaints were from the U.S.

>Males lost more money than females. Men lost $1.51 to every $1 that women lost. Individuals who were between 40 and 49 years old on average lost more than other age groups.

Adjusting currency for blind would impact ATMs, CUs

Credit unions could be impacted by proposed changes to U.S. currency that would make denominations easier to read for the visually impaired.

The U.S. Bureau of Engraving and Printing is working to redesign banknotes after the U.S. Court of Appeals in the District of Columbia in 2008 upheld a 2006 lower court ruling that the federal government violated the U.S. Rehabilitation Act by not providing meaningful access to banknotes for the blind and visually impaired.

The Treasury is proceeding to redesign currency and will soon seek comment on the proposed designs. The comment period is expected to last about 90 days, said James Hanisch, executive vice president of CO-OP Financial Services in Rancho Cucamonga, Calif., a credit union service organization.

Depending on which design the Treasury proposes and what denominations will be affected, the changes could be a "fairly expensive proposition" for credit unions. The $20 bill is the most commonly dispensed at ATMs, and its change would have the largest impact. The $1 bill will be exempt, and the $100 bill will be grandfathered in the next redesign, Hanisch said.

Changes in currency sizes could mean adjustments to cash drawers, vaults, and ATM canisters and dispensers. ATM manufacturers already have the capabilities to change the machines, since many countries have already adjusted their currency sizes for the visually impaired, he added.

Currency changes could cost $3,000 to $5,000 per ATM, depending on the denomination. CO-OP offers about 28,000 ATMs, Hanisch said.

At minimum, the changes are a year a way. "It's just starting to sink in how significant this could possibly be," Hanisch said.

Fiber optic speed coming to computers

High-speed data communication isn’t so speedy by the time it reaches your video player or smartphone.

Lasers may send information flying in tiny bursts of light through optical fibers across oceans and cities. But you’re still in the electronic slow lane when you’re transferring high-definition videos or other large files between devices. Then the content travels only at the rate permitted by the USB or other cord.

But soon, some data exchanges between consumer gadgets may travel at the higher rate of fiber optics, letting people transfer a Blu-ray version of “Gone With the Wind,” for example, or the complete family photo archive in less than a minute.

Later this year, Intel will introduce its Light Peak fiber optic link, in a bid to replace USB and other electrical cables that connect computers with digital cameras, music players, smartphones and dozens of other devices, said Jason Ziller, Intel’s director for the optical input-output program office. Light Peak optical cable technology, which includes computer chips and miniature lasers, will be available to manufacturers later this year, he said, for installation in products next year. Prices are not yet available from Intel.

(Read the entire article at: http://www.stltoday.com/stltoday/news/stories.nsf/nation/story/D05D94426042D100862576E600103DBC?OpenDocument
or
http://bit.ly/b8yRj1

Continental to let coach customers buy more space

Continental Airlines will begin charging coach customers extra if they want a seat with more legroom.

Prices will vary depending on the length of a flight and popularity of the route. A spokeswoman said extra room on a Houston-New York flight might cost $59. International fliers would pay more than that.

Starting March 17, coach customers will be able to pay the charge at check-in to get an exit-row seat with at least 7 inches more legroom than the other rows, Continental said Wednesday.

Top-level members of Continental's frequent-flier program - those who rack up at least 25,000 miles a year - and their traveling companions will still be able to claim the exit row without extra charge.

To see what other airlines are doing, visit:  http://bit.ly/8YCZKV  

Google 411 Info Service - FREE

Google's new 411 information service is free, fast and easy to use. Give it a try now and see how simple it is to find and connect with local businesses for free.

Dial from any phone  -  (1-800-466-4411)   1-800-GOOG-411

See demo at:  http://www.google.com/goog411/index.html

Stalker Fear Over Phone App

A CAMERAPHONE application that finds names and addresses of total STRANGERS was blasted as a "stalker's dream". The facial recognition "app" instantly identifies snaps by matching them to photos on websites like Facebook and Twitter, where personal info is accessed.

Horrified security experts claim BURGLARS taking secret snaps of revellers could find out their addresses. Unsuspecting strangers fooling around on nights out could also fall prey to BLACKMAIL.

And women could be stalked by PERVERTS.

Simon Davies, of Privacy International, slammed the "Recognizr" gizmo as an "atrocious invasion". He warned: "It takes the dangers that already exist and increases them infinitely."

Dr Ian Brown, of the Oxford Internet Institute, said: "A guy could take a picture of a girl in a bar and find out all sorts of information."

The "app" is being developed by Swedish software firm The Astonishing Tribe. They were unavailable for comment.

Tom Gaffney, of software security experts F-Secure, said: "This app looks like it could be a stalker's dream."

Read more: http://www.thesun.co.uk/sol/homepage/news/2872019/Stalker-fear-over-facial-recognition-phone-app.html#ixzz0gxUDL8Of

Or

http://bit.ly/ajAhHr

February News & Views Published Below

CU SECURITY & TECHNOLOGY News - Providing a brief summary of news and information related to security and technology issues for credit unions - Plus some interesting and fun web sites . . .
(Click on photo to enlarge)