NCUA Releases 2023 Guidelines for Credit Unions on Fraud Prevention Cybersecurity and Consumer Protection

January 25, 2023

The National Credit Union Administration, which issues regulations and guidance for credit union operations nationwide, released its 2023 guidelines today covering key topics for its members. High on the list of items credit unions need to be focused on are: fraud prevention and detection tools, cyber security defense plans, and consumer protection policies.

Credit Unions tend to be more customer sensitive, which makes sense as the customer relationship typically precedes and extends beyond a mortgage transaction. Protecting the experience of their credit union members in all aspects of their business relationship is critical to maintaining their overall success, including growth and retention of their membership. This is very different from the typical mortgage broker or mortgage lender experience where a relationship will not usually extend beyond one or perhaps two transactions in a lifetime.

Consequently credit unions must be more laser-focused on the issues of compliance relating to fraud, cyber security and consumer protection. One bad event can close a credit union’s doors for good.

Because many credit unions are multi-faceted business enterprises, mortgage lending is often managed through the outsourcing of the lending workflow to a CUSO (credit union servicing organization) and to experienced vendors in areas such as cybersecurity and fraud prevention. At Secure Insight we have helped many credit unions manage the risk of wire fraud and closing table mortgage fraud for years, and it is an effective partnership.

For more detailed information on NCUA’s new regulatory supervision letter for 2023, please use this link:

https://www.ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/ncuas-2023-supervisory-priorities

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