Weekly Videos to Come

This blog has been dormant for some time now and I realized that it is time to add some short video content to assist members and consumers on a variety of everyday financial scenarios. Topics will include fraud/scams, account services, financial tips, and happenings at our credit union and within the credit union industry itself. 

It's much easier for you to watch video content than to have to read about it. This will be a work in progress so hopefully some of the content will be beneficial. Stay tuned! 

The Coronavirus Effect

Every credit union President/CEO is working through their pandemic plans that they hoped would never become a reality. The global pandemic of course is real and impacting credit unions everywhere. Our credit union , like many others throughout the country, has just moved our operations to drive thru only to reduce the person to person transmissions of the Coronavirus. Services other than transactions will be available by appointment. This operational change was not taken lightly. Emergency management teams of the state and local government have asked businesses to reduce the social space of interactions. Ultimately, the safety of our employees and members were the guiding force in our temporary operational changes.

The lives of credit union members are being negatively impacted more by the financial impacts of this pandemic emergency more than the health considerations. Yes, the health risks are real and people of all ages should take the guidance of the Centers for Disease Control seriously. The domino effect though is that people are losing their income and jobs because of this worldwide situation. Credit unions will be here to help their members with loan assistance efforts that include payment skips, payment reductions, interest rate reductions, and recovery consolidation loans to decrease the monthly expenses.

Fear and panic create more damage than the actual emergency in some situations. The hoarding of toilet paper and essential supplies has been an example of that. Our credit union is limiting the amount of cash back to members on a daily basis to insure that all of our members have access to cash. We have increased the daily purchasing limit on debit cards by an additional $1,000 to provide access to funds. All deposits are insured to at least $250,000 by the National Credit Union Administration. There was a story from another credit union where one of their older members was requesting over $100,000 in cash from their account. That is panic hoarding that is both dangerous for the member and potentially damaging to financial institutions. No financial institution keeps cash on hand that equals the amount of deposits on hand in all accounts. Credit unions are a financial cooperative so money deposited is also used for loans to other members and investments to produce the income needed for operations and payment of dividends. 

Common sense and empathy towards others will go a long way in helping all of us to get through this pandemic situation. People helping people was the genesis of credit unions being created in the first place following the Great Depression era. Credit unions are here now for our members and will remain available for recovery efforts throughout this situation and beyond. 

Top 10 Financial Tips for Young Members

Throughout the year there are several opportunities to speak with young people on financial tips as they move into the world of account ownership. Money does not come with any instructions and financial mistakes can be very costly. The "learn as you go" approach with banking accounts and money is not ideal as a result. Working in the credit union industry for over 32 years has revealed the good, the bad, and the ugly in terms of stories with account holders and their money. The objective with our youth should be to avoid the financial mistakes made by those in the past. 

Below are the Top 10 Financial Tips covered in financial presentations to schools and youth groups. If any schools or youth groups are interested in a financial tips presentation, please email your inquiry to feedback@naecu.org . 
           
Top 10 Financial Tips

• Establish an account somewhere, preferably somewhere that does not charge you any fees just to have an account.
• Review your account history. Errors can and do occur plus fraud can take place and your rights have time limits.
• Do not accept fees as a way of life. Fees are like rent, money gone forever.
• Be leery of strangers offering gifts. Scams are born from greed and unrealistic offers. Don’t ignore red flags.
• Have a plan for your money and resolve to save some designated percentage. 5-10% is a good savings goal.
• Do your homework on purchases and financing. It is your job to find the best offer. Quick and easy can have a high cost.
• Do not trust text messages, calls, or emails as being legit. NEVER provide personal information from an unsolicited contact. Trust but verify with the real source.
• If having an amount drafted from your account, it is preferable to having it done by ACH rather than with a debit card. You can’t put a stop payment on a debit card monthly transaction and debit card numbers can change often due to fraud listings.
• Protect your credit history by paying debt as agreed. Your cost of credit increases dramatically when poor credit history exists. Your availability can be limited as well. Talk to your lender if help is needed to maintain your good history.
• Don’t be afraid to ask questions. Money doesn’t come with instructions. Banking issues can be confusing and costly at times.

        It's your money, how much do you want to keep?

Current Expected Credit Losses (CECL): How it Could Impact YOU

Have you ever been presented with a solution in search of a problem? The general outlook for most people is if it isn't broke, don't fix it. The Financial Accounting Standards Board (FASB) several years ago decided that the method by which all financial institutions reserve funds for loan losses needed to be changed. The current method of reserving funds for loan losses is historical, meaning it looks at loan losses of the past and applies that loss ratio to similar loan pools on hand now. Sounds reasonable, right? It should also be noted that financial institutions in general, especially credit unions, have not suffered any major problems with adequate funding of reserves for loan losses under the current system.

FASB has decided, on their own, that a new method of reserving for losses called "Current Expected Credit Losses (CECL) would be a better method for providing a more accurate picture of a financial institution's balance sheet to potential investors or anyone evaluating a particular institution. When implemented, a credit union would have to immediately incur an expense to the allowance account (a reserve fund for loan losses) when a new loan is funded. This would be before any loan interest is collected on that loan or before a first payment even has the chance to be delinquent. The allowance amount to be funded would be the "expected" total loss of that new loan. Again, no income will have been earned yet before the credit union is being asked to incur expense for funding a loan. Seems a bit backwards, doesn't it? Crystal balls are also not readily available so determining a future loss is largely reliant on what we use now, past loss history of a loan type.

What could be the negative impact of CECL on consumers? Some institutions could limit lending to higher credit risk members who have lower credit scores. The cost of that credit will also likely rise to offset the added expense of immediate funding for a loss that may or may not occur. Our delinquency rate by the way is consistently less than 1% of our total loans to members so delinquency is not a huge problem now. Members with lower credit scores need access to credit just like everyone else does. CECL could greatly impact a credit union's ability to serve the very members that we exist for. It is generally accepted that most credit unions will see more expense to their bottom line using the CECL method versus our current allowance for loan losses method.

Unless further delays are enacted, CECL funding requirements will be required of all institutions by the fiscal year after December 15, 2021. Significant expense resources are also being utilized to insure that data systems are in place to support and comply with CECL prior to the implementation date. All these adverse impacts for a solution to a problem that never existed. North Alabama Educators Credit Union is proceeding with CECL models for consideration/testing and use by the required date in accordance with what the regulation will require.

There is a Senate bill in Washington, DC to delay implementation of CECL to study the possible negative effects on consumer credit. Senator Thom Tillis of North Carolina introduced the Continued Encouragement for Consumer Lending Act (S. 1564) earlier this week.

Caller ID Spoofing Fraud

Local credit unions combined forces to produce a Public Service Announcement (PSA) on the growing Caller ID Spoofing problem going on throughout the country.


Here is a link to the PSA video: CLICK HERE


Basically, Caller ID as a reliable technology is dead. Do not rely on Caller ID as a verification of who is calling you. Caller ID can be tricked to show any number that the caller wants, such as a financial institution or government agency.


Credit unions have spent decades of building trust with our members and scammers are abusing that trust with Caller ID Spoofing. NEVER give out personal information on an unsolicited call regardless of who is supposedly calling you. Scammers are trying to gain the 3-digit security code on the back of your credit or debit card. Don't do it!

Video Surveillance

All financial institutions will employ a variety of video surveillance equipment throughout the offices of each operational location. Video recording is taking place both inside and outside of our offices. This video is there to document a number of events taking place over the course of a given workday. Video is capturing vehicle and pedestrian  traffic as they come and go from our parking lots. This capability has assisted the credit union in cases of vehicle accidents, property damage to our buildings, personal injury falls, and fraud and/or crimes to document vehicles being driven. Several years ago our main office was robbed and we were able to capture images of the getaway vehicle that dropped off the robber before the robbery.


The outside cameras have helped while we are closed also to document storm damages or criminal activity taking place on our lots after hours. Police departments often review our outside video coverage for events that have taken place near our offices.


Once an individual steps into one of our offices, there are numerous cameras throughout the building that will capture different angles of people coming and going. This is why we ask that hats and sun glasses be removed. If you've ever seen robbery suspects the vast majority have hats and sun glasses on to help disguise their appearance. We once had one of our credit union members walk in with his full face motorcycle helmet on while doing a transaction at the teller window. When I saw this live on my office monitor I immediately went to verify that all was ok but to also counsel that member to never to do that again. We have tellers who have been involved in robberies and they do not need scary situations being presented to them in the course of their daily jobs. Our cameras at the teller lines have helped to document disputes over money exchanges and service. Video is pretty honest and comes in handy often.


Video surveillance is there for both your protection and that of the credit union employees.



Con Artists Taking Advantage of Western Union Settlement

If you were a victim of a scam between January 1, 2004, and January 19, 2017, and used Western Union’s money transfer system, you are able to file a claim to get your money back.
However, scammers are now trying to take advantage of this settlement to scam you again!


They will send an official-looking email about the Western Union settlement and ask you for information about your transaction, along with your name and ad...dress. The thing to know is that you cannot apply for a refund by email. These emails are scams. Do not respond and do not give any information.

Better Business Bureau offers tips on how to submit a claim:
· Go to www.ftc.com/WU for more information and to file your claim. The deadline is May 31, 2018. · Only the amount you transferred via Western Union is eligible for a refund. Other expenses like Western Union fees, other losses, or transfers sent through other businesses are not eligible for a refund.  · If you sent money to a scammer via Western Union and don't have paperwork related to the transfer you may still be eligible for a payment.


If you have already applied for a refund and you get an email about it, call Gilardi & Co., the claims administrator, at 1-844-319-2124.


If you have not yet applied for a refund and get an email asking you to apply for one by responding to the email, please tell the FTC.


Source: BBB.org and Federal Trade Commission: United States Federal Trade Commission, www.ftc.gov - not subject to copyright protection. 17 U.S.C. 403.


This tip provided by the BBB of North Alabama.

Equifax Data Breach - What Should You Do?

There was a national webinar held yesterday on 09/21/2017 where over 1,300 credit union security members from across the country received information and suggestions related to the recent Equifax data breach. The webinar was frankly a sobering several hours. This data breach is far worse than any so far since it impacts 143 Million consumers. Basically anyone who has a credit report on file with Equifax is included in the data breach. What is most concerning about this data breach is that the data stolen is a treasure trove of all the most critical, personal information. Names, addresses, birth dates, social security numbers, employment information, and in some cases, driver's license information. 

With this information, a data thief could create account relationships of all types. Deposit accounts, loan accounts, rental agreements, medical insurance, and others could all be fraudulently created. 

Scary stuff for sure and a helpless feeling for many consumers. What should consumers do?

Access to the credit file must be restricted to avoid use by a criminal. Restricting that access can either be done by a credit freeze or a fraud alert. 

A credit freeze is when the consumer establishes a block on their credit report where nobody can access their file. The consumer establishes a PIN that only they know. To unlock that credit file the consumer must log into the credit bureau site and provide that PIN. There normally is a cost for a credit freeze but given the scope of this massive potential for identity theft, hopefully any costs will be waived for a period of time. It is VERY IMPORTANT for anyone using the credit freeze to secure their PIN in two separate secure locations. Consumers who lose their PIN will have a difficult time getting their credit file unlocked. A credit freeze must be placed by the consumer on each of the credit bureau agencies.

A fraud alert may be preferable since the credit file could be obtained but no action would be available/legal unless the consumer was notified by the established contact number listed in the fraud alert. The fraud alert is intended for identity theft victims. The fraud alerts typically expire ever 90 days, unless the consumer is a direct identity theft victim and then the fraud alert is good for 7 years. In my opinion, Equifax has just created 143 Million identity theft victims so hopefully the 90 day period will be extended for all new fraud alerts added because of this data breach. Another good aspect of the fraud alert is that it only requires the consumer to notify one credit bureau which then contacts the other credit bureaus to file on their reports also. 

Credit monitoring services are also recommended to alert consumers to activity involving their credit report or personal identification. Utilizing the various account alerts on deposit and credit accounts is also recommended to keep a close eye on any unusual activity that might take place. 

Consumers and financial institutions are going to be dealing with an elevated risk of identity theft concerns for many years as a result of this Equifax data breach. Consumers are encouraged to visit the various credit bureau sites below for specific information and steps to better secure your personal credit file(s). 

https://www.equifax.com/ 
https://www.transunion.com/ 
http://www.experian.com/ 
https://www.innovis.com 

For those without Internet access, Equifax has a dedicated incident response number of 1-866-447-7559 with hours of 7:00 AM to 1:00 AM, everyday including weekends.

Federal Reserve to Begin Same Day ACH Debits on 09-15-2017

A big change is coming on 09-15-2017 that will affect those consumers who have been using a bit of "float" time on their checking transactions. In the past, consumers have written checks on the day that they will be paid that night. Payrolls and other direct deposits that post in the evenings are being posted for recipient access by the following business morning. In the past, these checks written would never be presented for payment in the same day unless a merchant physically brought the check to the financial institution. That all changes on 09-15-2017. The Federal Reserve will then be processing same day Automated Clearing House (ACH) debits several times during each business day. This means that a check written at 10:00 AM could be presented electronically to the financial institution for payment that same afternoon. This only applies to those merchants who will convert checks written to an ACH debit as a means of receiving their money. The big box retailers will most certainly do this but smaller, local merchants probably will not at least not at the beginning of this change. 

This will also apply to any debit authorizations given over the telephone or Internet. If you authorize a debit from your account with a merchant that morning, it is possible that your checking account will be debited that afternoon for the transaction amount. Again, there is a cost for a merchant processing multiple debit files throughout the day so not all merchants will utilize the availability. 

The problem for consumers is that they will not know which merchants (1) Convert written checks to ACH debit drafts, and (2) Process multiple debit authorization files throughout the day.

The best advice is to maintain a practice of only authorizing transactions on your checking account for funds that are already in place within the account, or available from an overdraft source. Legally, funds are already supposed to be in the account at the time of the transaction. Online home banking, mobile apps, and audio response systems are all available to verify available balances before transactions are performed. 

Please remember that this same day ACH debit change is coming from the Federal Reserve and will affect all financial institutions. Also know that same day ACH credits (deposits) began a year ago to speed up deposits coming into accounts.

Why North Alabama Educators Credit Union?

Consumers have many choices out there, so why choose North Alabama Educators Credit Union (NAECU) for financial services? 

To begin with, we're a credit union. The financial structure of a credit union means that you as a consumer will receive a better overall benefit. NAECU is owned by our 10,200+ members and governed by our nine volunteer board members who are mostly either current or former employees of a school system. There are no outside investors from other states or countries making decisions that impact our local member-owners. NAECU is a "not for profit" entity so our objective is to maintain safety and soundness reserves while returning all other profits back to our members in the form of lower loan rates, higher savings rates, and much lower fees than traditional banking institutions. An example of this would be our low cost, low dollar loans of $500 or less that traditional for profit institutions are not interested in since they do not produce enough profit. Again, profit is not a primary motivator with a credit union. 

Being a mid-sized credit union at roughly $90 Million in Total Assets, NAECU has the ability to offer many of the same popular electronic services as the big multi-billion dollar institutions such as home banking, bill payment, mobile App, remote check deposit through SPRIG, debit card controls through our MobiMoney app, online loan applications by phone or tablet, and a Surcharge Free ATM locator App to find one of over 28,000 ATM's available. The big difference is that our members can actually speak with our staff and management about any issues or problems that need to be resolved. It is rare for account holders of the big regional banks to be able to speak with the CEO on an inquiry or problem on their account. As the CEO of NAECU my job is to work for our members so I am always eager to meet or speak with any of our members and do so quite often over the course of each week. Our staff has the time to be more friendly and helpful during member visits, something not always available at the much larger institutions where long lines tend to promote speed over service. 

There is nothing wrong with being members of multiple credit unions. Each credit union, regardless of their size, operate under the same "not for profit" structure. Each credit union offers different strengths that may change over time. Consumers benefit when they compare services available to them. It is our job at NAECU to offer the best services at the best prices whenever possible, recognizing though that we have to manage the balance sheet of our member's deposits and loans in the process. Our auto loan rates remain some of the most competitive in the area because our balance sheet right now could use more loans rather than deposits. It's not a bad thing but indicative of how pricing and availability of services takes place. Every credit union needs borrowers AND savers. 

NAECU has been around since 1955 and is still going strong. How many institutions can you think of that have been merged or sold in the last 10 years? One of the business models of small community banks is to build a customer base and then sell that bank, plus their customers, to a larger regional bank. The customers don't benefit from those acquisitions but the bank investors sure do. NAECU is the most local type of organization you can think of since the vast bulk of our member-owners live and work right here in the Tennessee Valley. 

It sounds corny but the primary objective of NAECU is to help improve the bottom line of our member-owners above our own. Ownership does have benefits. It is the difference between being a member of an organization that works for you versus being a customer of an organization that needs you to produce income for the real owners, the investors. 

Don't be a Money Mule

A "Money Mule" is anyone who allows their banking account be used as a means of transferring funds to an unknown third party. Scams, frauds, and outright money laundering operations utilize a money mule to either move stolen funds or illegal funds. Account holders have a legal responsibility to know who they are transacting business with and are responsible for all funds that flow in or out of their account. 

Popular scams involving money mules are work from home offers, lottery/game awards, Secret Shopper programs, and inheritance scams. There is usually a money making component to these scams where a small percentage of the funds can be kept. Money can be received by cashier's checks or even electronic deposit in some cases. In most cases the checks are either counterfeit or stolen checks and electronic deposits can be money stolen from a victim elsewhere.

There is no good reason for anyone to allow a stranger to move money in and out of your own personal account. No legitimate employment would be processing their payroll through an individual personal banking account. If you ever did truly win a large lottery award you would not be asked to pay taxes and such up front. If money was stolen from elsewhere and deposited into your account, you could be held responsible both from a civil and criminal standpoint. 

If you ever have a suspicion due to a request to move funds through your own personal account, feel free to contact the management of your financial institution. I have personally assisted various credit union members over the years in preventing losses from scams and fraud cases. We would much rather help you before the fact rather than after! 

Do Your Homework on Car Shopping

We all know about homework, right? The idea is practice and learn how to perform better when it counts. Whether in the classroom, arts, or sporting arena the value of preparation cannot be denied. If we recognize that homework is valuable for these purposes then it must be beneficial for major purchases. 

Purchasing an automobile is one major purchase where proper homework can payoff in considerable reduced cost. Researching information surrounding a vehicle purchase BEFORE meeting a seller is really a necessity to make an informed transaction. 

To keep things simple, below is a basic homework list for potential car shoppers;

1. What to buy? You know what you like so research a list of vehicles that you are interested in. Consumers Reports is a great resource for research on reliability, strong points, and weak points of vehicles tested. For pricing information www.nada.com and www.kbb.com are excellent resources. You as the buyer should NOT be paying the retail value on most vehicles. Split the difference between wholesale/average trade-in and the retail value for an offer price. If buying a new vehicle you should work up from the invoice price, not down from the MSRP price.This is a fair price to both the buyer and seller. If you have a trade-in vehicle be sure to obtain the pricing info on it as well. You can usually obtain more for your vehicle by selling it yourself but that process is not always convenient for everyone. A CARFAX report is relatively inexpensive and well worth the price if the seller does not have the report available for your review.

2. Where to buy? The world wide web has opened up so many more sellers with vehicles available. Online shopping sites allow you to customize and search for exactly the type of vehicle you want. We have seen more and more members buying vehicles out of the area, especially if the vehicle being sought is limited in supply. Be leery of online offers that request a deposit to "hold the vehicle" for you as often these are just pure scams. It's always good to buy local and support local dealers when possible but keeping local dealers honest by checking pricing elsewhere is the right approach to doing your due diligence in obtaining a fair price. If buying a used vehicle from an individual it is important to promote safety in meeting locations, and avoid carrying large sums of cash until you're certain of a deal. It is advisable to meet in a public place such as a financial institution parking lot or police area. 

3. How will you pay for the vehicle? Amazingly this factor is often neglected until the vehicle has already been selected and that car fever is at a high level. The emotional side of us just wants to get the deal done and move out to the road in that shiny new ride. You may have negotiated a great deal on the vehicle but if you don't do you homework on financing (if you needing to finance) you are a prime candidate for paying too much. Dealerships especially make a considerable amount of profit from the financing and various add-on's that they will offer on a vehicle. Do you homework on available loan rates and offers, knowing the full terms and conditions connected to them. You might hear a "low as 1.50% APR" rate offer but then discover that the low rate is only available for 24-month financing for a A-rated credit score. Everyone has risk-based pricing meaning that your actual loan rate will be determined by your credit score and length of the loan. Shop around and know what the rate could be for the term you will want. A pre-approval is a great way to find out exactly what is available to you. Don't forget to research what your insurance costs will be as well. 

4. Avoid the "How much are you willing to spend?" game. I have had dealers to ask me that question and I always answer "What it's worth." If you reply with a desired monthly payment amount they will find a vehicle within that range and have you paying that amount much longer than you would like. You would also likely be forever upside down on that vehicle, meaning that you would owe more than the vehicle is worth.  This upside down situation makes it much more difficult to sell or trade that vehicle later on. 

5. Read what you're signing. You need to know what is the final Annual Percentage Rate (APR), monthly payment, term of the loan (how many months), and any fees or charges associated with the loan and paperwork. There are several dealers now charging extremely high document fees of $500, $600, & more. You can negotiate a lower price of the vehicle as a result of these higher document fees. When shopping different dealers find out what the different document fees are. 

6. Do your homework on add-on products as well. One big seller on all vehicles is Guaranteed Asset Protection (GAP) that covers any gap that might exist in an accident total loss situation between what the loan payoff is and what your automobile insurance will pay. Dealers sell this product for upwards of $500 and higher where NAECU sells the product for $199. Extended warranties, roadside assistance programs, and other products will be presented as well so research these as well before adding to the obligation. 

Doing the proper homework on all aspects of a vehicle purchase will make you an informed buyer and reduce the possibility of paying more than you should for a transaction that you will be living with for multiple years. 

MobiMoney - Take control of YOUR Debit Card!

Tired of data breaches where your Debit Card info gets hacked and money is taken from your account? We are too! Take control of your debit card and help stop fraud with our new MobiMoney phone app. With the MobiMoney app you can turn your Debit Card off and on, set lower dollar amounts for approved transactions, receive notifications on transactions, and other controls.

The Credit Union would recommend that you use this FREE app to turn the card off/on as necessary and set a dollar amount for approved individual transactions that you normally perform, like $150.00 to $200.00. Setting notifications for some specified dollar amount is also a good tool to make sure that only you are performing transactions on your debit card. If a hacker attempts a $500.00 transaction in California and you have these controls on, that transaction would be denied plus you will receive an instant alert through your phone on the transaction. You can always change your max dollar amounts for transactions so long as they don’t exceed our daily institution cap of $1,500.00 per day. (Controls can be changed live on the spot at any time using the app.)

To download the FREE app go to your Play Store or iTunes and search for “MobiMoney”. After downloading the app enter your MasterCard Debit Card number to enroll in the FREE service. IMPORTANT: Please remember or record your “Username” so that you can reset your password later if you forget it.

There is no worse feeling in the world than having your MasterCard Debit Card in your possession and having a counterfeit card transaction take place, stealing money from your account. This FREE MobiMoney app can help to prevent that nightmare situation from happening.

Personally, I use this MobiMoney app to turn my debit card off when not in use. (Just remember to turn back on before use!) When the card is turned on I have a lower dollar amount maximum in place that I can change on the spot of a retail store if necessary. I also have set transaction notifications to be sent on transactions above $50.00. These would go through but I would see them immediately which would be helpful if one came through that I didn’t do.

Please note that each joint owner would need to enroll their own cards since card numbers vary by each owner or joint owner. If the credit union had a majority of members using this MobiMoney service for their MasterCard Debit Cards, unauthorized fraud losses would decrease dramatically. Protect yourselves and take control using MobiMoney! 

CLICK HERE for a short video on the MobiMoney app by our card processor, Vantiv! 

Inheritance Scam: Not Your Lucky Day!

Below is a copy of an actual email received on the infamous "Inheritance Scam" that never seems to go away. I have placed XX's in those areas where the scammer had a name and contact information given. I find it interesting that the communication never addresses my own name at all and in fact they have a section at the bottom for me to enter my information. If I was truly the benefactor of such a large inheritance, you would think that they would already have my name/address. Even if you receive a similar email with your name and contact information included, these foreign inheritance emails and/or letters are always fake. You certainly would never have to split funds with anyone or pay taxes ahead of time to receive your money. This has been cut and pasted so pardon the structure and spellings;

I am writing to confirm, if you received 'my previous e-mail' regarding you having the same Surnames with my late client/inheritance.I hereby request your assistance and delegate the necessary authority to you on behalf of my late client to carry out this claim. Who was a business magnate that lived in Europe for over a decade prior to his death. I got your detailed contact e-mail Address through your country data, while searching for any possible relative OR a last name similar to my late clients.

Prior to my late client death; He made a mutual investments deposit worth the sum of $7,400,000.00 (SEVEN MILLION, FOUR HUNDRED THOUSAND DOLLARS) with a Financial safekeeping investment company (holding a client's securities or other assets on his/her behalf) here in Europe and declared it as a family-treasures. As the Attorney/Solicitor present during the deposit by my late client and family, the Financial safekeeping institutions has officially notified and instructed me to present heir/heiress to make Claims, so that he/she can be paid the outstanding deposit,which have been recorded by the company.Else the fund will be confiscated and taken to the Bureau of government treasury as unclaimed.

Further to extensive research, I decided to contact you; My suggestion to you is that I will like to present you as the heir/heiress to the Financial safekeeping institutions.Having a common Last Name with him is our ability to defend it and stand firm in other for us to achieve our goal;but I would like to assure you that I am proposing this project to you with the best of my intention.All I require from you is your honest co-operation; I guarantee that this transaction will be executed under a legitimate arrangement that will protect you from any breach of law. Upon successful conclusion of this project, once the deposit is been release to you, we shall disbursed the content in the ratio of 50% /50% for me respectively as our benefit ($ 3.7 Million each).

Kindly confirm your understanding of this delegation by sign OR call my direct telephone number, via my office email address. Email: XXXXX@gmail.com as above you can equally send a fax with your Telephone /fax number for oral clarification.

Call at direct telephone number for effective communication on how to proceed next.

Contact telephone number : + xx xxx xxx xxx

We appreciate your assistance in this matter.

Your Printed Name: ----------------------

Telephone Number: -----------------------

Kindest Regards,

Mr. XXXXXXXXX

Executor of a Will

Tel : + (xx) xxx-xxx-xxx

Tel : xxx-xx-xxx-xxx-xxx

Election Day 2016

Americans enjoy many freedoms that often get taken for granted over time. The right to vote is one freedom that a majority of Americans do exercise in presidential elections, although roughly 60% of the eligible voters participating could be argued as a low number. That means that 40% of the people eligible to vote are not voting for some reason. Apathy is a big reason cited by voters who are not voting. This presidential race in particular has probably generated more apathy and discomfort in the political process than any presidential race that I can remember. 

Whether we like one or none of the presidential candidates, Americans will elect a new President to begin a new term in 2017. Our individual voices via our votes are the only way to determine who our elected officials will be. Everyone has their own process for determining who they will vote for and there is no wrong or right way. It is YOUR vote. It is YOUR right as an American citizen. 

This country was founded as a replacement for a political system where there were no votes being cast for government officials and there was no representation of the people. Our current political system is not perfect, far from it, but the voice of the people can make a difference when ballots are cast. Voters can send a message that can serve as a mandate for change, even in losing efforts. 

Vote. Encourage those you know to vote. While this election season has generated considerable division among the candidates and their supporters, we all should be unified in participating in the process that ultimately listens to our collective voices. 

Gas Stations and Card Skimming - Be Alert!

Millions of travelers will be hitting the roads this Labor Day holiday weekend and consumers are urged to remain alert to the possibility of card skimming at gas stations. Our insurance bond carrier, CUNA Mutual Group, has alerted member credit unions about the possibility of increased card skimming activity at gas stations. The new EMV card readers are not required at gas stations until October 2017 so gas station locations around the country have become a popular spot for stealing card information. More than 260 skimming devices have been detected in the last year at gas pumps in the state of Florida alone.

Part of the problem with gas pumps is that most of them have a universal key lock making them extremely vulnerable to tampering by data thieves. Once the tampering is done with a skimming device inside the gas pump, it is often well disguised and not easily noticeable to patrons.

After the data is captured, fraudsters return to harvest the stolen card information from the skimming device or, is some cases, access and retrieve the data remotely. The harvested data is then used to manufacture counterfeit cards or the data is sold to other criminals.

Scary stuff here! While the credit unions have some internal tools to monitor card activity, what steps can consumers take to protect themselves?

Look for security tape over gas pump cabinets to reduce the chances that it hasn't been tampered with by unauthorized parties. (Picture above in left corner). If the tape is removed, cut, or the gas pump appears tampered with, do not use it and report it to the gas station manager.

Try to utilize gas pumps that are located closer to the front of the gas station as fraudsters will typically place skimming devices at gas pumps away from the store to go unnoticed.

Consider using a credit card rather than a debit card at the gas pumps. While there is consumer liability protection for both, most find dealing with a credit card compromise less intrusive.

If using a debit card at the gas pump, run the debit card as a credit authorization where you don't have to enter your card PIN number. This would prevent counterfeit ATM transactions since they would not have the stolen PIN number.

Consider going inside the gas station to prepay for your gas purchase. They may have the EMV card reader inside to protect your data from being stolen.

Finally, check your card accounts closely to watch for any unauthorized transactions. Home banking and mobile banking are great ways to closely monitor your accounts during the month plus they can show pre-authorizations that have not been debited yet on the account.

Liars, Thieves, and Crooks

There doesn't seem to be any shortage of thieves trying to separate consumers from their money from online or telephone scams. The credit union continues to hear about multiple variations of old dirty tricks designed to either invoke trust or fear as the catalyst for stealing money. 

It seems as if more telephone scams by calls or text are on the rise. The fake jury duty call scam has been making the rounds where a call is made stating that a warrant has been issued for your arrest because of failing to appear for jury duty. Providing a credit card number can pay the fine and make it all go away they say. Fake calls for a loved one supposedly in a jail or hospital late at night are fairly common. Again, fear is the prime motivator here as they strike fear into the victim's heart in hopes of rendering them oblivious to the normally obvious red flags associated with an unknown caller. 

Fake collection calls where they state that your arrest is imminent if you don't pay over the phone are another common scam taking place.

Fake Microsoft or Internet support calls from "tech support" callers are numerous and they want access to your computer to steal your personal information. I had one of these calls myself some time ago and quizzed them on multiple points which of course caused them to promptly hang up.  

Calls and text messages claiming to be from your financial institution attempt to utilize trust and fear as a tool to steal. Members typically trust their credit unions so if their credit union says that something is wrong with their account, they must act quickly to avoid any loss of their hard earned savings. Unfortunately the opposite occurs when criminals are able to obtain personal account information. Our Fraud Department will call and text members on suspicious transactions but we will not be asking for any personal information. 

How do you keep from becoming a financial victim? 

First and foremost, recognize that people wake every day thinking up ways to steal your money.
Adopt a general distrust of any calls or texts that you receive that are asking you to provide any personal information. NEVER give out personal information or account numbers to strangers, including callers who claim to be from your financial institution. Remember not to trust Caller ID as a verification of the actual caller since Caller ID can be spoofed to display any number. 
If fear is a component of the urgency of a requested transaction, that is a huge red flag. Step away from the situation and ask yourself "does this make sense?". If a loved one is supposedly in harm's way and needs assistance, contact other relatives to confirm or ask for the name of the facility/location involved and call yourself using a telephone number that you have verified yourself. 

If urgency is required, caution is required. 

Call the credit union with any suspicious requests that you may receive. I'm happy to speak with members on these scams as it also helps us to know what types of fraud is being attempted in the community. Be careful out there! 

EMV Chip Cards are Here: Now What?

The new EMV chip debit and credit cards are here. That being said, how should you change how you used your new EMV chip for transactions? The security value of these new cards is only realized when the EMV card is being used by an EMV card reader by the merchant accepting the card for payment. Much of the counterfeit card fraud that has taken place over the past few years occurred because of a card swipe where the data was stolen at some point by hackers. Cards that are swiped for the authorization do NOT transmit that card information in the most secure environment. There are many merchants and retailers out there right now who have the EMV chip reader at their point-of-sale terminals but do not use them because they don’t have the technology implemented yet. So what does that mean? They ask you to swipe your EMV chip card for your transaction. This is defeating the purpose of the technology and expense of issuing EMV chip debit and credit cards. Merchants who utilize the EMV chip reader at the point-of-sale are doing their best to protect your personal card information. As consumers and holders of these EMV chip cards, it is in our best interest to transact business with those merchants and retailers who have functioning EMV chip card readers.

True, the liability does shift from the issuer (credit union in this case) to the merchant/retailer when the EMV chip reader technology is not being utilized. Does that really mean much to you though when your money has been taken out of your account from a counterfeit card transaction from a location five states away? It is an incredible inconvenience to have your card information hacked and money stolen. Initially, your money is gone and you don’t have a working debit or credit card anymore.

Consumers need to put pressure on the merchants and retailers to implement the EMV card readers at their point-of-sale terminals. Does the authorization process take slightly longer than a swiped card transaction? Yes, but that time is secure time and would greatly reduce the threat of your money being stolen at some point in the future. Ask the store manager why they aren’t doing all they can do to keep your card information as safe as possible. If you have two retailers and one has an operational EMV card reader and the other doesn’t, you would be wise to choose the first one.

So far in 2016, North Alabama Educators Credit Union members have seen just over $80,000 in fraudulent transactions due to counterfeited debit cards on data that was stolen from the merchant card swipe process. Let’s get away from the card swipe process at retailers and reduce card fraud for everyone! 

EMV Cards & Liability for Consumers

EMV stands for Europay, Visa, and Mastercard, the three companies that originally created the idea of the EMV chip card where card information is stored in a chip embedded in the front of the card. (Traditional debit and credit cards have the information stored on a magnetic stripe on the back of the card.). The authentication parameters with the EMV cards change with each transaction where the magnetic stripe cards maintain the same card information, thus making it much more difficult to counterfeit an EMV chip card. The technology is only beneficial for "card present" situations where the card is physically presented for a transaction and the merchant has the point-of-sale terminal that can communicate with the EMV card chip. Online Internet transactions would not have any additional security enhancements from the EMV chip cards. Verified by Visa or MasterCard's SecureCode are the best tools available to prevent online card fraud.

Card issuers are still in the process of issuing EMV chip cards and merchants are installing EMV point-of-sale terminals that can read the EMV chips. North Alabama Educators Credit Union will have a mass card EMV card reissue of all member debit cards in the spring of 2016. Roughly only 20% of merchants have installed the EMV chip readers at this point.

The focus of the EMV card technology was about reducing fraud and shifting liability. What does this mean to the consumer in terms of liability? In short, nothing should change from a liability standpoint. The liability shifts being discussed have been between the merchants and the card issuers who are the financial institutions. The credit union has not charged our membership for any portion of unauthorized charges even though VISA rules and government regulations allow for consumers being responsible for the first $50.00 per fraudulent incident for fraudulent charges. One concern that I have is if the liability for a fraudulent charge is shifted to the merchant, it would not surprise me to see that $50.00 cost be passed on to consumers, possibly more if the fraud is not reported promptly;

• up to $500 if you fail to notify the bank within two business days after you realize the card is missing, but do notify the bank within 60 days after your bank statement is mailed to you listing the unauthorized withdrawals. 

A banking financial institution has an ongoing account relationship with a consumer. A retailer two states away does not share that same relationship so if they have liability for a fraudulent transaction, they will most certainly hold the consumer responsible for the first $50.00 in their reimbursements for unauthorized charges. Time will tell how the liability shifts between the merchants and the institutions will impact any costs passed on to the card consumer. If there were to be $50.00 fraud liability costs passed on to the members by the merchants, it would be guess that the credit union would absorb that $50.00 cost since we have already been doing so. Rest assured that many traditional banks out there would not be doing that. 

More information on our EMV cards to be issued in 2016 will be provided to our cardholders during the first quarter of 2016. In the meantime, member liability for unauthorized transactions still remains a $0.00 liability for our credit union members. 

Weather Closings and Delays at NAECU

It has been predicted by multiple sources that the Tennessee Valley can expect a harsher winter this year due to changes associated with the El Nino weather patterns. Time will tell whether the forecasters are correct or not. One thing is for certain however in the Tennessee Valley - this area is not well suited to clear roads from winter weather events. Governmental budgets are stretched thin as they are so additional resources for winter weather events are pretty much non-existent. That translates to roads being impassable and officially closed under fairly minimal snow and ice events.
If roads are not safe or closed due to weather conditions, that means that our employees cannot travel safely to and from their own homes. Safety of our employees is the primary factor in determining our operating hours when dealing with weather events.

My decision in closing or delaying operating hours of the credit union is not made lightly. I never make a decision on a closing or delayed opening until at least the early morning of a day in question. There have been too many occasions where a winter weather event was expected the night before that did not produce the anticipated results. In order for the credit union to close or delay an opening, there must be active road problems taking place or a line of known winter weather coming that is causing driving problems in its path. We all know that tornadoes are possible throughout the year as well. We did close early on the tornado outbreak day of April 27, 2011 because of the high probability of damaging tornadoes which sadly did occur. Luckily our employees were home when the long track tornado took out the power grid and did so much damage in Morgan, Limestone, and Madison counties. Again, safety of our employees is our primary objective.

We are working on a phone app system where members could be alerted to changing office hours due to weather events. In the meantime, our web site's home page is updated as well as our social media pages on Facebook and Twitter. We send out an email message via Constant Contact to subscribers (no cost) to inform about any necessary office hour changes. To subscribe to our Constant Contact mailing list, CLICK HERE to provide you name and valid email address. You can unsubscribe at any time.  

Everyone should be weather aware. If there is anticipated poor weather expected in our area, making financial plans and obtaining some cash before the weather event is always a good idea.