Alabama Securities Commission

It was a pleasure to listen to Joseph P. Borg, Director of the Alabama Securities Commission (ASC), speak at a luncheon meeting earlier today. Various investment fraud examples were discussed as well as a need for general investor educational resources. The current economic environment is almost a perfect storm for fraudsters. You have very low yields on traditional investments so investors are looking to earn a higher yield on their liquid cash. The volatile markets of real estate, rising oil prices, and rising gold prices have also created opportunities for investment fraud in these areas. This does not mean that investments in these areas are a bad choice, just that scammers use the headlines to sell legitimacy and to gain trust.

Investments that offer very high yields should always be reviewed and researched very closely. How many times have we heard "if it sounds too good to be true, it probably is". One of the fraud examples given during the presentation offered investors a doubling of their investment within 18 months. This simply is not realistic and sure enough the investors lost all of their investment dollars. Do not allow the lure of a high yield prospect to cloud good financial judgement.

The ASC website has valuable resources, investor alerts, and links to help educate investors in making a sound financial investment. Here is their website - http://www.asc.state.al.us/index.htm . Check it out!

Electronic Pickpocketing

A few members have contacted the credit union about national news media stories on the issue of "electronic pickpocketing" and concerns over data theft. For those who have not heard about electronic pickpocketing, it is basically theft of data from a plastic card that possesses a RFID (radio frequency identification) chip. The RFID chip sends out a short wave radio signal so that merchant readers can receive the signal and authorize transactions on the card without the need for a physical swipe of the card. Scammers have realized that a cheap portable card reader could be used to obtain someones card information while the card is still secured in the person's wallet or purse. In a crowded mall or shopping area, someone could be standing within a few feet and electronically obtain some of the card information. There are a multitude of videos online that demonstrate this type of data theft. The card number and expiration dates can be stolen with this type of technology.

North Alabama Educators Credit Union does not utilize RFID chips with our VISA Debit Cards. The VISA Credit Cards issued through our partner Elan also do not utilize RFID technology. As a result, there is no threat of data theft from electronic pickpocketing on our member cards.

It is important to note that the 3-digit security code on the back of cards cannot be obtained via electronic pickpocketing. The majority of Internet transactions with a credit or debit card would require the correct 3-digit security code to complete a transaction. For those who do possess cards with an RFID chip there are special protective card sleeves available that would block transmission of the short wave signal.

Regardless, it is still unnerving to say the least that someone could electronically steal card information from your wallet or purse just by standing close by.

Again, North Alabama Educators Credit Union does NOT utilize RFID technology for either our debit or credit cards.

$1,500 Scholarship from NAECU

Our annual $1,500 scholarship is once again available to a graduating high school senior from our area. Scholarship applicants must be a primary account member of North Alabama Educators Credit Union. As a reminder, all students of public and private schools in Madison, Morgan, or Limestone counties are eligible to join North Alabama Educators Credit Union.

The essay question this year is: "The year is 2025. How will banking be different in the future? What will be the differences and similarities of banking as we know it today?"

It will be interesting to see the essay responses. Given the technology background of the Tennessee Valley, some of these graduating seniors may very well be developing the banking advancements for the future.

For complete scholarship details and a scholarship application, visit our web site page at http://www.naecu.org/news/scholarship.html . Applications may also be requested at any branch office. Good luck to all applicants!

Merry Christmas from NAECU

Merry Christmas and best wishes for a safe and peaceful holiday season. Our staff, board of directors, supervisory committee, and I are very appreciative of our credit union membership. Thank you so much for choosing North Alabama Educators Credit Union.

VISA Gift Cards

Having difficulty finding a gift for someone? A VISA Gift Card is the perfect gift since the card can be used at any merchant that accepts VISA. The VISA Gift Cards can even be registered online by the user for purchases and transactions performed on the Internet. This Internet access actually can be useful for those members who are looking to make an Internet purchase but are leery about using their own credit card or debit card online. For the record, debit cards are not recommended for Internet use due to the exposure of your own account funds if a fraud compromise occurs with the merchant being used. We have seen several members recently who have been the victims of debit card fraud which is believed to have arisen from Internet usage with their debit card.

North Alabama Educators Credit Union has VISA Gift Cards available for the holidays and for any reason during the year. Graduations, weddings, and birthdays come to mind. Teenagers love these cards! The VISA Gift Cards can be purchased for amounts from $10 to $500 at a low cost of only $2 per card purchased. The new rules for gift cards also make them a more attractive gift because the expiration dates are much longer now. These VISA Gift Cards are available at all of our offices.

Safety Tips to Reduce Card Fraud

FICO recently distributed a good list of tips for card holders to reduce the exposure to possible fraud. These are the highlights;

F - Figure out your balance. Keep close tabs on the balances of any financial account that is accessible by a plastic payment card. Identifying a dramatic change in one of your accounts is the best early warning system a consumer can have.

R - Respond to contact by unknown persons with extreme caution. It's ok to hang up and call back! Do not trust text messages, emails, or direct telephone calls from persons unknown to you especially if they identify themselves as an employee of the financial institution. NEVER call a telephone number that is provided to you by unknown persons. Obtain the financial institution phone number on your own and call them immediately to verify your account status.

A - ATM Safety. Never approach an ATM if anyone is lingering nearby. Never engage in conversations with strangers around an ATM. Never use an ATM if you see loose or wobbly parts attached to the face of the ATM or notice a dramatic change in the appearance of the ATM since your last visit.

U - Unreported incidents can hurt you. If your plastic card is captured inside of an ATM call your card issuer immediately to report the card capture. Sometimes you may think that your card was captured when in reality it was later retrieved by a criminal who staged its capture.

D - Don't hesitate. Ask your card issuer for a new number if you suspect that your card has been compromised at a merchant, restaurant or ATM. It is important to change both your card number and your PIN whenever you experience a potential theft of personal information.

Visit FICO on the web at www.fico.com.

Pictures with Santa - December 4th

North Alabama Educators Credit Union is once again hosting our "Pictures with Santa" event on Saturday, December 4th at the main office location on Whitesburg Drive. Pictures will be available from 9:00 AM to 2:00 PM for a cost of $10.00 that includes a professional 4X6 photo and a Christmas stocking filled with goodies.

This was a popular event last year and was well received by the members and children who participated in the event. Our employees had a fun time with the day as well.

All of the proceeds for the pictures will benefit our Breast Cancer Awareness fund.

We strongly encourage appointments if at all possible to avoid lengthy waits for photos. (Smaller children don't always have much patience, especially when Santa is around!). Please RSVP Laura Simpson at loanclerk@naecu.org or call 256-534-2423 to schedule an appointment time.