Credit union fraud perpetrated by the cooperatives' ownemployees has turned into a significant risk, according to industryexperts.

CUNA Mutual Group, the insurer for the majority of U.S. creditunions, reported in 2014 that internal fraud accounted for 46% of the money it paid in claimsbetween 2009 and 2013, even though instances of employee dishonestyonly accounted for 14% of total claims during that time.

In addition, while the numbers are difficult to pin down, theNCUA's data for the same time period showed credit unionfailures due to internal fraud were beginning to dominate shareinsurance fund losses as well.

Which of these measures has your creditunion taken to reduce internal fraud risk: (Check all thatapply)
Employees that handle money or approve loans must take atleast one uninterrupted week-long vacation every year.Rotate employeesbetween branches. Rotate theemployees involved in hiring and setting up new vendors.Periodicallyupdate background checks and/or credit reports on key executivesand board members. Publicizeanti-fraud policies to employees. None of theabove OtherPlease Specify:

PollMaker

However, while experts familiar with preventing internal fraudsaid it may be impossible to thwart when instigated by adetermined, dishonest employee, they said the likelihood can atleast be reduced by understanding the problem and implementing afew relatively simple policies.

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