Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Although the NCUA recently announced it is developing new exam procedures to improve the identification of fraud risk indicators, especially at small institutions, experts agree that fighting fraud requires a team effort that includes active boards, strong supervisory committees and stiff internal controls.

“Weak internal controls provide a breeding ground for substantial losses or even failure,” C. Keith Morton, NCUA Region IV director, wrote in an article for Cornerstone Credit Union League earlier this year. “Record-keeping problems, out-of-balance conditions, overdue audits or member account verifications, and manipulated records create a dangerous environment for fraud to take root and go undiscovered. It may be only one person who commits the fraud, but lax management oversight, along with a failure of the supervisory committee to perform its vital functions, may allow this individual to embezzle for months, if not years.”


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.