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Guest Blogger, Ann Wildman with ADM Credit Union

Everyday presents new opportunities to learn and grow. Unfortunately, last October we discovered an employee theft situation that was started by enrolling a member in home banking with a valid email created by the former employee. The theft was not discovered until the member brought it to our attention that he had not received a statement in a while, and informed us that he never enrolled in online banking. Your employees have access to all of a member’s information to enroll them unknowingly. I was stunned at how this began and developed. 

We now have a Results report scheduled weekly for our home banking enrollments. We verify with our members that they indeed enrolled, and if they have any questions. This actually has been a very positive procedure as we have spun it into a marketing interaction versus just an audit verification. I delegate a different employee to make the phone calls each week. If we are unable to contact the member a letter is mailed. We did have one member that insisted he never enrolled in online banking only to find out that his wife, who is a joint account owner, had enrolled. We also have had members ask questions or need help with setting up alerts or downloading the mobile banking app.

While we are a small credit union and can contact all of the members who enrolled, a larger credit union could verify with a percentage of new enrollees or whatever their audit department suggests. Our supervisory committee members also added this to their list of items they check on a periodic basis. So, our problem last fall ended up being a great marketing and member experience opportunity for our credit union in addition to adding this to internal audit procedures. Even our outside audit firm has added this to their items they review at all of their client credit unions. Hopefully sharing our experience and change in procedures may deter this from happening at another institution.