WASHINGTON -- A court has ruled that AIG must pay PSCU FinancialServices $2.4 million in identity theft claims after the insurerinitially denied payment.

After contracting AIG, PSCU was involved in uncovering a fraudring that took over approximately 125 accounts, representing morethan $1.6 million in losses. The total award represents theoriginal judgments, attorney fees and costs.

"We have stated publicly that we will rigorously protect ourmembers from all types of fraud and that we will use litigationwhen necessary," PSCU Financial Services President David J. Serlosaid. "In this situation, we assumed responsibility for immediatelycovering all the losses for our credit unions and then submitted aclaim to our insurance company. We feel that justice has beenserved and we are pleased that we have received full recovery forthe losses due to the incident, as well as our attorney fees andother related costs."

PSCU Financial Services is the nation's largest credit unionservice organization with 1,100 customers and 500 credit unionmember-owners representing over 11 million cardholder accounts andmore than 400,000 online bill payment subscribers.