Know Your Member (KYM)
What are some common forms of identification used to verify a member's identity?
Driver's License, Passport, Social Security Card, etc.
What is the BEST method of preventing fraud at the branch level?
ASK QUESTIONS !!!
How long is a member's account considered 'new'?
What type of hold needs to be placed on all 'new' account checks?
30 Days
'New Account' Hold (9 Business Day Hold)
What are the top drawer and 2nd drawer teller cash limits?
Cash drawer limits should be kept at $10,000 total.
- Top Drawer: $2,000
- 2nd Drawer: $8,000
What is the term for a fraudulent email designed to trick someone into revealing personal information?
Phishing
What is the term for suspicious activity that may indicate money laundering or other financial crimes?
Suspicious Activity Report (SAR)
List at least three of the steps that should be taken when determining if cash is counterfeit.
NOTE: Counterfeit pens are not 100% accurate.
- Can you see security thread from both sides of the bill and only when it is held up to the light?
- Can you see the watermark from both sides of the bill and only when it is held up to the light?
- Does the paper feel crisp?
- Does the ink feel slightly raised?
- Does the paper feel thinner than regular paper?
Floridacentral employees are required to report suspicious transactions including deposits, withdrawals, transfers, and payments if we know, suspect, or have reason to believe the transaction(s) are suspicious. What is this report called and how many days do we have to file this report?
Suspicious Activity Report (SAR)
A SAR must generally be filed within 30 days of the time in which the CU became aware of the facts that might constitute a basis for filing the form.
What are the cash in/cash out/checks in transaction limits for certified tellers and head tellers?
Tellers - $5,000
Head Tellers - $20,000
An older member requests to withdraw a large sum of cash & is accompanied by a person who is trying to control the situation. What could this be considered?
Elder Abuse
What is the primary goal of KYM procedures?
To verify the identity of members and reduce the risk of fraud.
What are some red flags that might indicate a check is fraudulent?
List three types of items that are considered 'Same Day Items' according to Reg CC guidelines.
- US Treasury Checks
- US Postal Service Money Orders
- Federal Reserve Bank & Federal Home Loan Cks
- State or Local Government Checks
- Cashiers, Certified, Official or Teller Checks
List three 'exception hold' reasons in accordance with Reg CC.
- Repeated Overdrafts: Has the account been overdrawn 6 or more days in a 6 month period?
- Doubtful Collectability: Unable to verify same day item; post or stale dated check; check deposit is unusual for the member.
- Re-deposited Item
- Large Deposit: Deposit is greater than $5,525 in one business day.
- Fraud Indicator: ITC code is an 'A' for Alert for Fraud.
- Emergency Conditions: Interruption of communication, computer, weather, or other conditions beyond our control.
A member is notified that they won a prize or large sum of money and is asked to send funds to the payer before they can receive the funds that they "won." What type of fraud/scam is this?
Lottery/Publisher's Clearing House fraud scheme
List three Points of Credibility to review when determining if an item should be placed on hold.
- Available Balance: Is there enough available in the account to cover the amount of the item?
- Average Balance: Does the average balance cover the amount of the item?
- Comments: Have there been any returned deposited items has the member had in the last 6 months?
- Membership History: How long have they been a member? Do they have a recurring direct deposit? Is this transaction consistent with the member's prior transactions?
When a member opens an account online and only makes ATM deposits, is this considered a RED FLAG?
Why or why not?
Yes.
The member is ensuring limited exposure to credit union personnel.
What is the Act called that the US government uses to fight drug trafficking, money laundering, and other crimes and when was it enacted?
Bank Secrecy Act (BSA)
The Currency & Foreign Transactions Reporting Act, AKA the Bank Secrecy Act (BSA), was enacted in 1970.
List the three types of check endorsements.
1) Blank Endorsement: Occurs when the payee signs their name on the back of a check. Since a blank endorsement can be negotiated by anyone who presents it for payment, this type of endorsement should be used when depositing in person to minimize fraud risk.
2) Special Endorsement: When the member specifies that the check is “For Deposit Only” above their signature. By using this type of endorsement, the check can only be deposited to the account of the person whose name is shown on the “Pay to the Order of” line on the front of the check. A stamp, such as “Deposited to the account of the within named payee - Absence of endorsement guaranteed” is sufficient. Each office has this stamp.
3) Restrictive Endorsement: Restricts the use of the check that is being deposited. In a restrictive endorsement, the member can specify “For Deposit Only to the Account of Jane Doe” or “For Deposit Only to Account 12345”. This ensures that the check will be deposited to the specific account.
What are some of the physical indications that a member may be a victim of fraud and/or involved in a fraudulent scheme/scam currently?
(Imagine the victim/member coming into the branch, how would they potentially be acting?)
List the five acceptable pieces of personal information that may be asked to verify a member over the phone.
1. Date of Birth
2. Mother’s Maiden Name
3. Address
4. Phone Number
5. Email Address
List at least three RED FLAGS that indicate that a check may be fraudulent/counterfeit.
- Different handwriting, especially on the legal/written amount field.
- Account holder's signature on the check does not match the signature we have on file or the signature on their Driver's License.
- Payee line appears to be altered.
- No perforated edges indicative of tearing the check out of a 'checkbook'.
What is the Co-op Shared Branch Fraudulent Activity & Suspect Profile Form used to report?
This form is intended to be used in notifying the Co-op Shared Branch network of fraudulent activity only and not a method of filing for grievance or dispute.
List at least FIVE of the steps to be taken when a member requests a large withdrawal in cash.
- Check the member’s ID
- Review the transaction history: How long has the account been open? / How long have the funds been in the member’s account? / If the funds are from a recent deposit, review the deposit. / When did any holds end? / Where did the funds come from? / How were the funds deposited? / Did they recently (within the last few days) make another large withdrawal?
- If the funds are from a recent wire, mobile deposit, ATM deposit, review those transactions and possibly contact the department or other branch to get details about the transaction or to verify that there are no concerns with the item or transaction.
- Review the comments and notes on the account for important information.
- Does the branch have an adequate amount of cash if the member wants to make a large cash withdrawal?
- Does the member appear to be in distress, flustered, nervous, etc.?
- Is this a common transaction for this member?
- What is the purpose of the withdrawal?
NOTE: If the member is reluctant to provide answers to your questions or requested information speak to your supervisor to decide if a Suspicious Activity Report (SAR) should be completed.
List three different types of bank/credit union fraud.
- Fraudulent Job Offers
- Lottery Scams
- Elder Abuse
- Warrants & Shutoffs
- Phishing Emails
- Ransomware
- Debt Collectors
- Real Estate & Mortgage Foreclosure
- Charities & Inheritance