Fraud Policy
Corning Credit Union is dedicated to protecting the assets of its members from and against all
forms of fraud and abuse. The Credit Union has a zero tolerance policy with respect to
fraud. Members that commit or attempt to commit a fraud against the Credit Union may face
suspension of services or termination of membership privileges, as well as criminal and civil
penalties
Financial institutions often bear losses related to unauthorized transactions via checks,
Visa/ATM/Debit cards, ACH and other sources such as the Internet. The purpose of this
policy is to inform our members of their rights and the Credit Union's fraud procedures, as well
as minimize losses that may be avoidable under the current regulatory and judicial environments.
The common types of fraud transactions include the following:
FORGERY: A forgery exists when a negotiable instrument has been passed whereby
the signature is not genuine, not authorized, and no benefit has been derived from the transaction
by the party whose name was forged.
ATM FRAUD: ATM fraud predominantly exists when a cash withdrawal or purchase has been
made by an unauthorized party who has gained access to both the plastic card and PIN without
the knowledge and/or consent of the account owner.
COUNTERFEIT CHECKS: A counterfeit check fraud exists when a check has been passed
whereby the check and signature are not genuine, not authorized, and no benefit has been
derived from the transaction by the party whose account the check was drawn against and the
name was forged. Members should be aware when endorsing a check that they are taking responsibility
for the validity of the check.
DEBIT/VISA CARD FRAUD: Debit/Visa Card fraud exists when a cash withdrawal or
purchase has been made by an unauthorized party who has gained access to both the plastic
card and PIN or a forged/absent signature without the knowledge and/or consent of the
account owner. Please refer to your Visa Retail Installment Credit Agreement to learn more
about Visa rights and regulations.
INTERNET TRANSACTION FRAUD: An Internet transaction fraud exists when a
transaction is posted to an account that was not authorized and no benefit has been derived from
the transaction by any owners of the account.
ACH FRAUD: ACH transaction fraud exists when a transaction (normally a debit) is
posted to an account that was not authorized and no benefit has been derived from the transaction
by any owners of the account.
Policy:
Prompt action will be taken on all claims to resolve the dispute within legal timeframes.
However, due to documentation and regulatory requirements, reimbursements for forgery,
ATM/Debit/Visa Card, counterfeit checks, Internet transactions, ACH fraud and other related
claims will not be approved until completed files have been submitted to and accepted as
actual fraud by the Corporate Security Officer or Internal Auditor.
Your liability for unauthorized transactions:
TELL US AT ONCE if you believe your ATM Card, Check Card, Visa Card or PIN has
been lost or stolen. This also includes non-electronic transactions made in person or by phone. Telephoning
is the best way of keeping your possible losses down. If you tell us within two business days, your loss
will be no more than $50 if someone used your ATM Card, Check Card, Visa Card or PIN without
your permission at an ATM. IF YOU DO NOT tell us within two business days after you
learn of the loss or theft of your card or PIN, and we can prove we could have stopped
someone from using your card or PIN without your permission if you had told us, you could lose
as much as $500 for transactions at an ATM.
If there is unauthorized use of your Visa Card, CU-Extra Check Card or X-treme Check Card at
a merchant location, you will not be liable for any amount of loss on your account.
If evidence shows gross negligence or contributory authority of use to a third party of your
Visa, Debit or ATM card, the Credit Union may limit or eliminate any reimbursement and may
determine not to issue a new card.
You must notify the Credit Union of any check alterations or forgeries promptly. If we
do not hear from you within thirty days after your statement is issued, the statement will be
considered correct. If your statement shows transactions that you did not make, tell us
at once. If you do not tell us within sixty days after the statement
was mailed to you, and we can prove that we could have stopped someone from taking the money
with your prompt notification, you will not be reimbursed for any money you lost.
If the suspected perpetrator on any claim is a related family member, a former spouse, a
roommate or close acquaintance of the account holder, or had prior permission to use ATM/Debit
Card, we will take all possible action to avoid making reimbursement on the grounds of gross
negligence and contributory negligence. Reimbursements on related party claims will
generally be made only after the judicial system renders a conviction.
Procedures:
CLAIM PROCEDURES
As soon as a member notifies the Credit Union of a suspected fraud claim, the Security
Officer or Internal Audit should be notified. Prompt action is required to secure the evidence
from further damage or loss. The check or captured card should be placed immediately
in a plastic sleeve to protect the fingerprints that may exist.
All cases will require an appropriate signed affidavit. By signing an
affidavit, the member attests to the truth of all information contained in the claim and
shows willingness to testify in court on any or all facts surrounding this claim.
The member may also be asked to provide a police report, any evidence or supporting
documentation needed for the Credit Union to obtain a conviction.
Once these documents are completed, the Security Officer or Internal Audit will review the
case for disposition. The options available will be based on the nature of the claim.
The approval for reimbursement in most cases will be determined by the above representatives.
The CCU Security Officer may deny or delay the refund until
a conviction or receipt of other written assurances that the parties will assist in the
prosecution. Once a claim is submitted to law authorities for prosecution, the law
enforcement agency should be consulted on any future dealing with either the claimant or
suspect since it may affect the case.
