Employee fraud and dishonesty does not discriminate. It can and does happen at credit unions of every size.
Therefore, credit unions of every size must approach risk and internal controls from every angle to stay more secure, Ken Otsuka, senior consultant, risk management, at CUNA Mutual Group said during a presentation Tuesday at the CUNA Bank Secrecy Act Conference.
While only about 13% of the claims credit unions file with CUNA Mutual involve employee dishonesty, the associated losses are “very, very severe,” Otsuka says.
The dollar amount paid on such claims is about 49 cents to every $1 of claims. What’s more concerning, he adds, is that embezzlement schemes seem to last longer, which translates into more money stolen per fraud.
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