Compliance Update with Amy K
by Amy Kleinschmit
Chief Compliance Officer

Elder Fraud.

In recent news, the FBI announced the results of an elder abuse fraud sweep. As many of our Dakota credit union professionals took part in the webinar earlier this year, this headline was timely and worth emphasizing the importance of remaining alert. In the past year alone, more than two million seniors were victimized. Estimated losses exceeded more than $700 million, per the FBI’s news release. The law enforcement actions resulted in criminal cases against more than 260 defendants.


As reported, “the FBI has opened 66 economic crime investigations related to elder fraud since March 1, 2018, according to the Internet Crime Complaint Center (IC3), a web-based clearinghouse for complaints of suspected crimes facilitated by the Internet. Its data shows confidence fraud and romance scams aimed at the elderly accounted for more than $184 million in losses over the past year.”


It continues, “Technical-support fraud schemes have cost victims over age 60 more than $26 million since last March. The schemes generated more than 142,000 complaints last year to the Federal Trade Commission, with consumers over age 70 filing the most complaints.”


Tax Imposter Scams.

The Consumer Financial Protection Bureau (CFPB) recently issued a blog post regarding IRS imposter scams. As noted, the scammers are getting sophisticated, including manipulating caller ID on your phone to say “Internal Revenue Service” or “Federal Government.” It may even have the real number for the IRS. The scammer could even provide a name and badge number with a telephone number to gain your trust. Scammers use modern technology and their smarts to make their scams seem as real as possible. Don’t fall for it!


The IRS will NEVER: 

  • Call to demand immediate payment with a prepaid debit card, gift card, or wire transfer. 
  • Threaten to bring in local police or other law-enforcement groups to have you arrested or deported for not paying.
  • Demand payment without giving you the opportunity to question or appeal the amount they say you owe.
  • Contact you by email, text message, or through social media to request personal or financial information such as PINs, passwords, credit card, bank, or other account information.

The CFPB developed a number of fraud prevention placemats to help educate older adults regarding scams. The “Beware IRS scams” which can be found here, can be downloaded or ordered in bulk from the CFPB.


Rural and Underserved County lists.

The CFPB published the 2019 “rural or underserved counties” list and the separate “rural counties” list. Find those lists here. At the same link, lenders will also be able to find the CFPB’s Rural or Underserved Areas Tool. Per the CFPB, “the tool is more comprehensive than the lists because the lists reflect rural status only at the county level; the tool includes both locations that are rural because they lie in rural (non-urban) census blocks and locations that are rural because they lie in rural counties.”


Compliance Solution.

Through the Credit Union Association of the Dakotas' partnership with AffirmX, we are pleased to present a full suite of compliance solutions for credit unions in the Dakotas. These tools have been designed to help your credit union reduce workloads, anxieties and costs. 


AffirmX was originally established to help financial institutions stay on top of consumer regulatory compliance requirements. Traditional “boots on the ground” models of consulting are costly both in terms of utilization of company resources and the time and billing rate of senior consultants and their associated expenses. To solve this problem, AffirmX leverages the latest in cloud-based technology to connect you with a team of experts and deliver a more robust compliance solution.


AffirmX has developed a package of basic compliance audits and risk intelligence support services. The package includes up to four audits, each of which is critical to a healthy compliance program:


  • BSA Independent Audit
  • Annual ACH Independent Audit
  • Annual SAFE Act Independent Audit
  • Website Compliance Review

In addition to receiving these four critical audits annually, the package includes a host of other services, including dashboard-delivered self-review templates with scheduled reminders and a subscription to AffirmX Compliance Reporter, Risk Inbox Plus and Risk Watch Central.


It is important to note, that the entire platform can be easily customizable to meet the needs of your credit union. Audits can be bundled or unbundled as needed. Contact Amy Kleinschmit today for a demo, pricing and questions on any of these solutions. Call 800.279.6328 ext 964.



<< Go to Memo List