Anti-Fraud Deposit Tool Becomes Business Booster

Credit Union Journal, The, November, 2003 by Mike Muckian

Credit Union: Credit Union 1

Nominated By: CUNA Mutual Group Nominated For: Reversing Loss Situation Few financial institutions can turn a fraud deposit loss problem into a membership development tool. But Credit Union 1, Rantoul, Ill., was able to eliminate its losses while turning its more taxing members into being better savers and borrowers.

In 1998, the $321-million credit union found its deposit loss problem getting out of hand, says Lenore Hansen, Credit Union 1's assistant vice president of loss prevention. The problem was so bad, in fact, that CUNA Mutual Group, which covered the losses with its Fraudulent Deposit- Forgery or Alterations bond, planned to raise the credit union's deductible from $2,000 to $5,000, she says.

"We had to stop the losses...

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