Whether it's a member's auto loan payment that's automaticallydeducted each month or a small business processing payroll online,automated clearing house risks are in the spotlight more thesedays. The risks can be confusing and can vary with each type oftransaction, according to CUNA Mutual Group.

To help clear though the fog, more than 1,000 people registeredfor a Feb. 19 webinar hosted by the company on such topics asemerging problems with online account takeover fraud andunauthorized origination of outgoing funds. The session alsocovered the risks of originating debits as deposits or loanpayments and operational issues for the receiver of fraudulentcredit and debit transactions.

On the ACH credit receiving end, with money mule scams where aperson transfers money acquired illegally in person orelectronically on behalf of someone else, credit unions werereminded that they do have some protections. RogerNettie, senior consultant, risk management at CUNA Mutual, toldattendees that credit unions should only return funds that stillexist and only if they get a letter of indemnification from theissuing institution. The same process applies for wire transfers.Another scenario on the ACH credit receiving end, involves issuesTreasury reclamations after a joint owner removes funds, Nettiesaid. For instance, a member is deceased but their Social Securitychecks are still coming with the joint account holder taking thefunds. This type of situation is preventable for credit unions if areclamation notice is sent saying the funds need to be returned anda response is needed on a timely basis. This action also applies toissues with IRS tax refunds of which the recipient's name is not onthe account, Nettie said.

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