Adequate Controls in Place?

The FDIC shared a Department of Justice report on a credit union employee, and her on-line boyfriend, Phillip Cook, fraudulently obtaining more than 30 lines of credit worth over $2.6 million.  The employee, Indira Mohabir, was a business loan processor at Western Federal Credit Union, and opened lines of credit without necessary oversight and approval from the credit union.  “In exchange for opening the lines of credit and concealing them from the credit union, Cook promised to take Mohabir on trips, and sent her a $50,000 check and flowers…”

This provides a good reminder that it is always the time to review staff limits and abilities to protect the institution from nefarious actions.  Can employees enter applications, book and issue loans without another employees’ involvement?  If so, you may want to tighten the reigns, or at least restrict their access to on-line dating sites.

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