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)
Happy New Year
Thursday, December 30, 2010
December 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)
Happy New Year
Wednesday, December 29, 2010
CUNA Says: Scams zero in on home equity lines
Identity thieves are having a field day with scams, particularly lucrative ones aimed at home equity lines of credit (HELOC). Others have stepped up their card scams, and phishing and vishing efforts to take advantage of consumers' good will and inattention to details during a busy holiday season.
The HELOC scams are increasing, according to Brad Mundine, regional manager for CUMIS' credit union protection and risk management division. He wrote an advisory last month that said HELOC account losses from theft have "increased significantly" this year, with the insurer losing more than $4 million so far in 2010 (StarTribune.com Dec. 23).
As a result of some HELOC thefts, lawsuits have cropped up, pitting consumers against their lenders, and lenders against their insurance companies over who pays when someone makes unauthorized charges. Credit unions are involved in at least two lawsuits related to thefts from HELOCs.
Last week a lawsuit was filed by a member against a Burnsville, Minn.-based Affinity Plus FCU after he was told he would have to pay nearly $90,000 in unauthorized charges against the his $200,000 HELOC account. The member, Mike Calcutt, found out about the theft during a conversation about interest payments on the loan in March. The thefts occurred after someone set up telephonic banking privileges on his account, then executed nine transfers of $10,000 each from his credit line to his savings account, and then instructed the credit union to wire the money to a drop account in Boston. Once there, the money disappeared.
In a separate case, Citizens Financial Bank in Indiana refused to cover $26,500 in bogus charges on a couple's HELOC after money was wired to a bank in Austria, where the money disappeared. A third case, filed in Philadelphia, involves another credit union, SB1 FCU, which covered a member's $220,000 loss from a HELOC and sought to recover the loss from its insurers, who denied the claims.
The Credit Union Information Security Professionals Association told the Star Tribune that of the 131 banks and credit unions participating in a 2008 webcast, 29 reported HELOC wire fraud incidents.
HELOCS aren't the only scams circulating. During the holidays a number of credit card scams surfaced. Here's a roundup of the latest scams:
Click here for the rest of the story:
http://www.cuna.org/newsnow/10/system122810-7.html?ref=hed
The HELOC scams are increasing, according to Brad Mundine, regional manager for CUMIS' credit union protection and risk management division. He wrote an advisory last month that said HELOC account losses from theft have "increased significantly" this year, with the insurer losing more than $4 million so far in 2010 (StarTribune.com Dec. 23).
As a result of some HELOC thefts, lawsuits have cropped up, pitting consumers against their lenders, and lenders against their insurance companies over who pays when someone makes unauthorized charges. Credit unions are involved in at least two lawsuits related to thefts from HELOCs.
Last week a lawsuit was filed by a member against a Burnsville, Minn.-based Affinity Plus FCU after he was told he would have to pay nearly $90,000 in unauthorized charges against the his $200,000 HELOC account. The member, Mike Calcutt, found out about the theft during a conversation about interest payments on the loan in March. The thefts occurred after someone set up telephonic banking privileges on his account, then executed nine transfers of $10,000 each from his credit line to his savings account, and then instructed the credit union to wire the money to a drop account in Boston. Once there, the money disappeared.
In a separate case, Citizens Financial Bank in Indiana refused to cover $26,500 in bogus charges on a couple's HELOC after money was wired to a bank in Austria, where the money disappeared. A third case, filed in Philadelphia, involves another credit union, SB1 FCU, which covered a member's $220,000 loss from a HELOC and sought to recover the loss from its insurers, who denied the claims.
The Credit Union Information Security Professionals Association told the Star Tribune that of the 131 banks and credit unions participating in a 2008 webcast, 29 reported HELOC wire fraud incidents.
HELOCS aren't the only scams circulating. During the holidays a number of credit card scams surfaced. Here's a roundup of the latest scams:
Click here for the rest of the story:
http://www.cuna.org/newsnow/10/system122810-7.html?ref=hed
Monday, December 27, 2010
Quick Tips: How Secure Is Your Password?
The New York Times reported on January 22 that 20% of all computer users typically use passwords that are easily hacked. A review of nearly 32 million passwords found that users are still choosing simple, easily remembered passwords in lieu of more complex combinations that might better prevent unwanted access. The six most popular passwords found in the study include:
• 12345
• 123456
• 123456789
• password
• iloveyou
• princess
The experts recommend using two different passwords — one 12 characters long for sites such as banks and e-mail, and an easier-to-remember one for social networking and entertainment sites. Changing your passwords on a regular basis is also recommended to maintain the security of your private information.
• 12345• 123456789
• password
• iloveyou
• princess
The experts recommend using two different passwords — one 12 characters long for sites such as banks and e-mail, and an easier-to-remember one for social networking and entertainment sites. Changing your passwords on a regular basis is also recommended to maintain the security of your private information.
Credit Card Fraud - $3.4 Billion and Counting
Credit card fraud costs US merchants and credit card companies more than $3.4 billion a year. That figure would undoubtedly be much higher without the use of computer surveillance systems to monitor every transaction.
One of the most proven antifraud systems is Falcon Fraud Manager, which keeps tabs on more than 4 billion transactions a month and uses lightning fast neural networks to scan for suspicious purchase patterns.
Neural networks were originally designed to mimic human gray matter. Over time, however, the technology has moved far beyond brain simulation to become a basic building block of many computer systems capable of learning and pattern recognition.
The networks typically consist of layers of interconnected neurons, each of which produces a signal only when its input exceeds a certain threshold. Though the individual neutrons are simple, the net as a whole can learn to recognize complex patterns of inputs.
The system specializes in detecting things a human would never notice. For example, if you use your card to buy a tank of gas and then go directly to a jewelry store to make a purchase, your account will almost surely be flagged, especially if you’re not a person who buys a lot of bling.
The reason: over years of correlating variables, testing, and learning, the system has noticed that a criminal’s first stop after stealing a credit card is often a gas station. If that transaction goes through, the thief knows the card hasn’t been reported stolen as yet and heads off on a spending spree, often at some high-priced retailer.
One of the most proven antifraud systems is Falcon Fraud Manager, which keeps tabs on more than 4 billion transactions a month and uses lightning fast neural networks to scan for suspicious purchase patterns.
Neural networks were originally designed to mimic human gray matter. Over time, however, the technology has moved far beyond brain simulation to become a basic building block of many computer systems capable of learning and pattern recognition.
The networks typically consist of layers of interconnected neurons, each of which produces a signal only when its input exceeds a certain threshold. Though the individual neutrons are simple, the net as a whole can learn to recognize complex patterns of inputs.
The system specializes in detecting things a human would never notice. For example, if you use your card to buy a tank of gas and then go directly to a jewelry store to make a purchase, your account will almost surely be flagged, especially if you’re not a person who buys a lot of bling.
The reason: over years of correlating variables, testing, and learning, the system has noticed that a criminal’s first stop after stealing a credit card is often a gas station. If that transaction goes through, the thief knows the card hasn’t been reported stolen as yet and heads off on a spending spree, often at some high-priced retailer.
Thursday, December 23, 2010
DMV Looks at Ears, Eyes, Mouths as Well as Faces
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| Cllick on Photo to enlarge |
Lack of a match may indicate that a person has given a fraudulent name. In the first quarter of 2009 alone, the DMV discovered 12,900 potential cases and pursued 363 of them.
Sunday, December 19, 2010
Abbreviations for Texting for Seniors
Since Seniors are texting and tweeting, there appears to be a need for an STC (Senior Texting Code). Here it is:
ATD: At The Doctor's
BFF: Best Friend Fainted
BTW: Bring The Wheelchair
BYOT: Bring Your Own Teeth
CBM: Covered By Medicare
CUATSC: See You At The Senior Center
DWI: Driving While Incontinent
FWB: Friend With Beta Blockers
FWIW: Forgot Where I Was
FYI: Found Your Insulin
GGPBL: Gotta Go, Pacemaker Battery Low!
GHA: Got Heartburn Again
HGBM: Had Good Bowel Movement
IMHO: Is My Hearing-Aid On?
LMDO: Laughing My Dentures Out
LOL: Living On Lipitor
LWO: Lawrence Welk's On
OMMR: On My Massage Recliner
OMSG: Oh My! Sorry, Gas.
ROFL... CGU: Rolling On The Floor Laughing... And Can't Get Up
SGGP: Sorry, Gotta Go Poop
TTYL: Talk To You Later
WAITT: Who Am I Talking To?
WTFA: Wet The Furniture Again
WTP: Where's The Prunes?
WWNO: Walker Wheels Need Oil
ATD: At The Doctor's
BFF: Best Friend Fainted
BTW: Bring The Wheelchair
BYOT: Bring Your Own Teeth
CBM: Covered By Medicare
CUATSC: See You At The Senior Center
DWI: Driving While Incontinent
FWB: Friend With Beta Blockers
FWIW: Forgot Where I Was
FYI: Found Your Insulin
GGPBL: Gotta Go, Pacemaker Battery Low!
GHA: Got Heartburn Again
HGBM: Had Good Bowel Movement
IMHO: Is My Hearing-Aid On?
LMDO: Laughing My Dentures Out
LOL: Living On Lipitor
LWO: Lawrence Welk's On
OMMR: On My Massage Recliner
OMSG: Oh My! Sorry, Gas.
ROFL... CGU: Rolling On The Floor Laughing... And Can't Get Up
SGGP: Sorry, Gotta Go Poop
TTYL: Talk To You Later
WAITT: Who Am I Talking To?
WTFA: Wet The Furniture Again
WTP: Where's The Prunes?
WWNO: Walker Wheels Need Oil
Friday, December 17, 2010
NCUA Passes Financial Literacy Requirement For CU Directors
The NCUA Board this morning approved a new financial literacy rule for the nation's 75,000 volunteer credit union directors requiring for the first time that each director obtain a minimum ability to read a credit union income statement and balance sheet.
The new requirement comes amid growing credit union losses and increasing sophistication of credit union finances. The required level of financial literacy will depend on the complexity of the credit union.
Directors will be given six months to receive training in financial literacy with NCUA providing both Internet-based and as many as 50 regional training sessions in the coming months.
"I think we can all agree that volunteers are the heart and soul of the credit union community," said NCUA Chairman Debbie Matz, who emphasized that directors should have a minimum of competence in basic finance and an ability to read and understand their credit union's balance sheet. She said NCUA is not planning hardcore efforts to police the new requirements, at first. "It's not going to be a game of gotcha; examiners are not going to go around quizzing volunteers," she added.
The new rules also include additional provisions on a director's fiduciary responsibility to his or her credit union and prohibits a credit union from indemnifying a director in cases of gross negligence. A credit union may, however, provide legal assistance to a director being sued if the credit union officers believe the director acted in good faith. These new provisions were prompted by several recent conversions to mutual savings bank when members sought to sue their directors over the squandering credit union resources during expensive conversion fights.
The new rules also includes new requirements for voting on credit union conversions to banks, stepping up requirements for independent third-party oversight of conversion votes; barring credit union employees form helping members fill out secret ballots; and preventing officers from seeing and using incomplete vote counts, something that occurred during several controversial conversion to bank ballots.
The new rule will also require in case of conversions to banks that credit unions provide members with an option of paying out a credit union's capital in a liquidating dividend; that it obtain and present to members a pre-conversion valuation by an independent third party; and that final member votes to convert to banks receive the affirmative vote of at least 20% of all members. It also requires that credit unions disclose during the conversion process what role, if any, current officers and directors will play once the conversion to bank is completed, and any compensation they may earn as a result.
Directors will be given six months to receive training in financial literacy with NCUA providing both Internet-based and as many as 50 regional training sessions in the coming months.
"I think we can all agree that volunteers are the heart and soul of the credit union community," said NCUA Chairman Debbie Matz, who emphasized that directors should have a minimum of competence in basic finance and an ability to read and understand their credit union's balance sheet. She said NCUA is not planning hardcore efforts to police the new requirements, at first. "It's not going to be a game of gotcha; examiners are not going to go around quizzing volunteers," she added.
The new rules also include additional provisions on a director's fiduciary responsibility to his or her credit union and prohibits a credit union from indemnifying a director in cases of gross negligence. A credit union may, however, provide legal assistance to a director being sued if the credit union officers believe the director acted in good faith. These new provisions were prompted by several recent conversions to mutual savings bank when members sought to sue their directors over the squandering credit union resources during expensive conversion fights.
The new rules also includes new requirements for voting on credit union conversions to banks, stepping up requirements for independent third-party oversight of conversion votes; barring credit union employees form helping members fill out secret ballots; and preventing officers from seeing and using incomplete vote counts, something that occurred during several controversial conversion to bank ballots.
The new rule will also require in case of conversions to banks that credit unions provide members with an option of paying out a credit union's capital in a liquidating dividend; that it obtain and present to members a pre-conversion valuation by an independent third party; and that final member votes to convert to banks receive the affirmative vote of at least 20% of all members. It also requires that credit unions disclose during the conversion process what role, if any, current officers and directors will play once the conversion to bank is completed, and any compensation they may earn as a result.
Thursday, December 16, 2010
Arizona now has anti-fraud program
Arizona Credit Union League & Affiliates has joined credit unions in a growing number of states to participate in Consumer Federation of America (CFA) program that seeks to protect consumers from fake check scams.
Six banks and seven credit unions in Arizona have agreed to participate. About a dozen states are participating in the campaign. Credit unions are active in all of them.
Saturday, December 11, 2010
Friday, December 10, 2010
Interesting Facts About Money
More about money – some interesting info...
Money might not buy happiness, but it does make the world go round and everybody seems to want to get their hands on it. Here are some intriguing details about our currency:
What's the biggest bill ever issued? The $100,000 Gold Certificate of 1934. President Woodrow Wilson's portrait was on these bills, which were only used by Federal Reserve banks and never went into general circulation.
How much of our money is in dollar bills? In fiscal year 2009, 42.9% of the bills printed were $1 notes.
How long does money last? Money may not stay long in your wallet, but it does hang around for a while out in the world. The government reports these average life spans for the various bills: $1 - 42 months; $5 - 16 months; $10 - 18 months; $20 - 24 months; $50 - 55 months; and $100 - 89 months. When bills are too worn, they're pulled from circulation and replaced. Coins last about 25 years.
How many pennies would it take to stretch across the country? It takes 84,480 pennies to cover a mile and over 250 million of them to go coast to coast. That adds up to over $2.5 million.
Did any bill ever have a picture of a woman? Martha Washington's portrait was on the face of the 1886 and 1891 $1 Silver Certificates and on the back of the ones issued in 1896.
Has a portrait of an African American ever been on U.S. currency? Commemorative coins in the 1940s had pictures of George Washington Carver and Booker T. Washington and a recent one honored Jackie Robinson. No paper money has had an African American's portrait, but the signatures of four African American Registers of the Treasury have been on our bills – Blanche K. Bruce, Judson W. Lyons, William T. Vernon, and James C. Napier – as well as the signature of one African American woman, Azie Taylor Morton, the 36th Treasurer of the United States, who served from 1977 to 1981.
What kind of paper do they use to print money? They don't. Our bills are a 75% cotton - 25% linen blend with silk fibers throughout. This is far more durable than paper when wet.
How tough is our money? Government tests show our bills can be folded forward and backward 4,000 times before they tear.
What is that eye at the top of the pyramid? The "all-seeing eye" is a symbol of divine providence.
E Pluribus Unum – what's it mean? This Latin motto means, "Out of many, one." It can be freely translated as, "Many uniting into one." It has been on the Great Seal of the United States since 1782, but didn't wind up on our money until 1902.
Is a torn bill still worth something? The U.S. Bureau of Engraving and Printing (BEP) says on their website: "The BEP redeems partially destroyed or badly damaged currency as a free public service....The Office of Financial Management, located in the BEP, uses experts to examine mutilated currency and will approve the issuance of a Treasury check for the value of the currency determined to be redeemable."
Money might not buy happiness, but it does make the world go round and everybody seems to want to get their hands on it. Here are some intriguing details about our currency:
What's the biggest bill ever issued? The $100,000 Gold Certificate of 1934. President Woodrow Wilson's portrait was on these bills, which were only used by Federal Reserve banks and never went into general circulation.
How much of our money is in dollar bills? In fiscal year 2009, 42.9% of the bills printed were $1 notes.
How long does money last? Money may not stay long in your wallet, but it does hang around for a while out in the world. The government reports these average life spans for the various bills: $1 - 42 months; $5 - 16 months; $10 - 18 months; $20 - 24 months; $50 - 55 months; and $100 - 89 months. When bills are too worn, they're pulled from circulation and replaced. Coins last about 25 years.
How many pennies would it take to stretch across the country? It takes 84,480 pennies to cover a mile and over 250 million of them to go coast to coast. That adds up to over $2.5 million.
Did any bill ever have a picture of a woman? Martha Washington's portrait was on the face of the 1886 and 1891 $1 Silver Certificates and on the back of the ones issued in 1896.
Has a portrait of an African American ever been on U.S. currency? Commemorative coins in the 1940s had pictures of George Washington Carver and Booker T. Washington and a recent one honored Jackie Robinson. No paper money has had an African American's portrait, but the signatures of four African American Registers of the Treasury have been on our bills – Blanche K. Bruce, Judson W. Lyons, William T. Vernon, and James C. Napier – as well as the signature of one African American woman, Azie Taylor Morton, the 36th Treasurer of the United States, who served from 1977 to 1981.
What kind of paper do they use to print money? They don't. Our bills are a 75% cotton - 25% linen blend with silk fibers throughout. This is far more durable than paper when wet.
How tough is our money? Government tests show our bills can be folded forward and backward 4,000 times before they tear.
What is that eye at the top of the pyramid? The "all-seeing eye" is a symbol of divine providence.
E Pluribus Unum – what's it mean? This Latin motto means, "Out of many, one." It can be freely translated as, "Many uniting into one." It has been on the Great Seal of the United States since 1782, but didn't wind up on our money until 1902.
Is a torn bill still worth something? The U.S. Bureau of Engraving and Printing (BEP) says on their website: "The BEP redeems partially destroyed or badly damaged currency as a free public service....The Office of Financial Management, located in the BEP, uses experts to examine mutilated currency and will approve the issuance of a Treasury check for the value of the currency determined to be redeemable."
Wednesday, December 8, 2010
Electronic Pickpoket Can Hit Your Credit Union
Electronic Pickpocket? - Take a look at this video.
http://www.wreg.com/videobeta/?watchId=8ba6f8fc-90a2-4711-90ea-1884ec348310
http://www.wreg.com/videobeta/?watchId=8ba6f8fc-90a2-4711-90ea-1884ec348310
Tuesday, December 7, 2010
UPS to require photo IDs for shipping packages
UPS is now requiring photo identification from customers shipping packages at retail locations around the world, a month after explosives made it on to one of the company's planes.
The Atlanta-based package courier said Tuesday the move is part of an ongoing review to enhance security. The directive will apply at The UPS Store, Mail Boxes Etc. locations and other authorized shipping outlets.
UPS customer centers have required government-issued photo identification since 2005.
In late October, a printer cartridge on a UPS cargo plane bound for Chicago was stopped in London after explosives were discovered. The package was later traced to a retail location in Yemen.
The stepped-up security also comes as UPS prepares for its busiest shipping day of the year. United Parcel Service expects to deliver 430 million packages between Thanksgiving and Christmas, and 24 million packages alone on its busiest day, projected to be Dec. 22. That's up 60 percent from a normal day.
"Since retail centers experience a significant increase in business from occasional shippers during the busy holidays, this enhancement adds a prudent step in our multi-layered approach to security," UPS Vice President of small business and retail marketing Dale Hayes said in a statement.
The Atlanta-based package courier said Tuesday the move is part of an ongoing review to enhance security. The directive will apply at The UPS Store, Mail Boxes Etc. locations and other authorized shipping outlets.
UPS customer centers have required government-issued photo identification since 2005.
In late October, a printer cartridge on a UPS cargo plane bound for Chicago was stopped in London after explosives were discovered. The package was later traced to a retail location in Yemen.
The stepped-up security also comes as UPS prepares for its busiest shipping day of the year. United Parcel Service expects to deliver 430 million packages between Thanksgiving and Christmas, and 24 million packages alone on its busiest day, projected to be Dec. 22. That's up 60 percent from a normal day.
"Since retail centers experience a significant increase in business from occasional shippers during the busy holidays, this enhancement adds a prudent step in our multi-layered approach to security," UPS Vice President of small business and retail marketing Dale Hayes said in a statement.
Thursday, December 2, 2010
November 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 . . .
Aging membership means challenges ahead: Mich. survey
From CUNA: http://www.cuna.org/newsnow/10/system112910-4.html?ref=hed
The U.S. population is aging, and seniors are the country's fastest growing demographic, which has implications for credit unions, says the Michigan Credit Union League.
The U.S. is experiencing a dramatic increase in the number of people who live to old age, according to the Administration on Aging, an agency of the U.S. Department of Health and Human Services, (Michigan Monitor Nov. 29).
This phenomenon is creating challenges for Americans of all ages as they cope with Social Security, health care, housing, employment and other national issues that are important to an aging population.
The average credit union member is 47 years old, up from 40 in just the past two decades, according to Credit Union National Association (CUNA) research quoted by the league. Given that the average adult credit union member has moved beyond his or her prime borrowing years of 25 to 44, credit unions should take notice as they plan for the future, said the league.
(Read more at: http://www.cuna.org/newsnow/10/system112910-4.html?ref=hed)
The U.S. population is aging, and seniors are the country's fastest growing demographic, which has implications for credit unions, says the Michigan Credit Union League.
The U.S. is experiencing a dramatic increase in the number of people who live to old age, according to the Administration on Aging, an agency of the U.S. Department of Health and Human Services, (Michigan Monitor Nov. 29).
This phenomenon is creating challenges for Americans of all ages as they cope with Social Security, health care, housing, employment and other national issues that are important to an aging population.
The average credit union member is 47 years old, up from 40 in just the past two decades, according to Credit Union National Association (CUNA) research quoted by the league. Given that the average adult credit union member has moved beyond his or her prime borrowing years of 25 to 44, credit unions should take notice as they plan for the future, said the league.
(Read more at: http://www.cuna.org/newsnow/10/system112910-4.html?ref=hed)
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