ViClarity Compliance Update

​Fraud claims & P2P services; Bitcoin ATM scams; CFPB report on debt collection practices; NCUA releases system performance data; and more.
 

The Dakota Credit Union Association’s dues-supported compliance solution –  ViClarity – is a world leader in credit union compliance. To read the complete articles/answers that are linked, you will need to log in with your username and password. If you have questions about establishing your members-only account with ViClarity, click here for detailed instructions or contact John Alexander in the DakCU office.

Q3 Webinar: A Closer Look at Fraud Claims & P2P Services
Is your credit union unsure of how to handle peer-to-peer (P2P) claims, or when you are required to investigate? Ponder no more! Join ViClarity Compliance Officer Sabrina Ducksworth-Brown as she explains the regulatory landscape surrounding P2P transfers, common P2P payment platform scams, the nuances of P2P transfers and how to handle fraud claims for Zelle, Cash App, Apple Pay, Venmo and other P2P payment platforms. The complimentary webinar takes place on September 26 at 1:00 p.m. CT. Register here.
 
FTC Report Shows $110 Million Consumer Losses from Bitcoin ATM Scams
The Federal Trade Commission (FTC) has released data with an uptick in the amount of money consumers report losing to scammers involving Bitcoin ATM machines. According to the released data, over the last four years the amount of losses has increased exponentially, totaling nearly $110 million in 2023.
 
Bitcoin ATM machines look similar to a traditional ATM. The kiosk is designed to purchase and sell Bitcoin and other cryptocurrencies using cash, debit, or credit. These ATMS can be found in many places, but are typically located in high-traffic areas, such as convenience stores, gas stations, and similar retail establishments. Scammers convince unknowing consumers that they should “protect” their savings by depositing cash in exchange for bitcoin. Read more here.
 
CFPB Report: Medical Debt and Rental Debt Collection Practices
The Consumer Financial Protection Bureau (CFPB) has issued an annual report on debt collection, which highlights “aggressive and illegal practices in the collection of medical debt and rental debt.” The CFPB’s report focuses on debt collectors’ attempts to collect medical bills already satisfied by non-profit hospitals’ financial assistance programs, as well as the fact that many medical bills from low-income consumers do not ever get addressed by financial assistance. It also addresses problems with real estate companies, particularly in regard to the use of “revenue management software.” Full article available here.
 
FFIEC Publishes New Booklet on Technological Practices
The Federal Financial Institutions Examination Council (FFIEC) has issued a new booklet to aid in allowing examiners to assess technology practices. The new booklet replaces the previous booklet that was issued in April 2004. Entitled the “Development, Acquisition, and Maintenance” booklet, it provides examiners with fundamental examination expectations in regard to entities’ development and acquisition planning and execution, governance and risk management, and maintenance and change management practices. Notably, the updated booklet provides new information including a “principles-based approach to IT risk management.” The booklet is available electronically and was published on August 29, 2024. Click here for additional information.
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NCUA Releases Q2 2024 Credit Union System Performance Data
The National Credit Union Administration (NCUA) has released the Q2 2024 Credit Union System Performance Data. In general, assets and loans grew, delinquencies increased and credit unions’ net income decreased. The summary gives an overview of the financial performance of federally insured credit unions based on information reported to the NCUA in the second quarter of 2024. There are 4,533 federally insured credit unions with a combined 141 million members as of June 30, 2024. Read more here.