1/9/2003
Sailors and Soldiers Relief Act Update
Due to increasing military reserve call-ups and enlistments, FDIC recently reminded financial institutions that the Soldiers' and Sailors' Civil Relief Act protects military members from legal obligations-incurred prior to active duty-that they can't meet because they are away from home or are making less money.
The act limits interest to 6 percent per year that can be charged on financial obligations incurred prior to active duty, unless a court finds that military service has not materially affected the borrower's ability to pay.
For a brief description of the act's key provisions, go to www.access.gpo.gov/uscode then select Title 50A, then select Soldiers' and Sailors' Civil Relief Act or visit www.fdic.gov.
7/1/04
SC Bankers Fight Crime
For Your Safety and Ours
The South Carolina Bankers Association is serious about fighting crimes against financial institutions. Two programs have recently been introduced to decrease crimes against South Carolina’s financial institutions. “No Hats, No Hoods, No Sunglasses” is a voluntary policy that banks can initiate for their customers that can reduce the number of bank robberies by individuals wearing common disguises. Fraud-Net.com is an internet-based system that provides financial institutions and law enforcement a secure platform on which to post and read alerts about criminal activities affecting financial institutions. Both of these programs will revolutionize the way South Carolina banks combat financial crimes and the methods used to communicate with law enforcement.
“No Hats, No Hoods, No Sunglasses”
Since the introduction of this program in early March, more than 50 banks have signed on to participate. The South Carolina Bankers Association brought the program to S.C., and the U.S. Attorney’s Office, the FBI, S.C. Credit Union League and S.C. Sheriff’s Association have joined in on behalf of their members and constituents to deter crime and robberies.
Banks are given the opportunity to participate in the program by ordering door and window static stickers, table tents, statement stuffers and other supplies to create awareness about the program. To create a unified message and a network of trust for the program, our goal is to eventually have all member banks participating. The program is very simple: participating banks are displaying signage that politely asks people to remove hats, hoods and sunglasses.
Law enforcement officials say the “No Hats” policy is an effective deterrent to the so-called “note job” robberies. These are the typically unarmed individuals who want to enter and leave institutions without being noticed. According to FBI statistics, last year there were 151 robberies of banks and credit unions in South Carolina, a 33 percent increase from 2002.
During the introduction of the program at a conference sponsored by the U.S. Attorney’s Office, J. Strom Thurmond, Jr., United States Attorney, had glowing remarks to say about the program, “The US Attorney's Office is glad to support this voluntary program aimed at reducing violent crime in South Carolina's banks and credit unions. By displaying signage and implementing a policy that asks all customers to remove these common articles prior to entering their financial institution, the would-be bank robber enters knowing that he must either reveal his identify or draw attention to himself from customers and employees alike. He may go elsewhere, or even better, he may cease and desist. ‘No Hats, No Hoods, No Sunglasses’ is a common sense deterrent to an all-too-common violent crime.”
The success of similar programs nationwide was the inspiration for the SCBA to establish the program. “We want to do everything we can to make our banks safe for customers and employees,” said Lloyd I. Hendricks, President and CEO of the SCBA, “We also want to do everything we can to insure that if someone enters a S.C. bank and commits a crime, that person will be caught and will go to jail for a very long time.”
Fraud-Net.com
The web-based Fraud-Net.com is a database system South Carolina banks and law enforcement are using to report fraudulent activities that affect financial institutions. The Florida Bankers Association developed the system. The SCBA will be joining with twenty other states that are already using the system. By working together, the states that are a part of the Fraud-Net.com system have access to the most up-to-date information and the tools they need to fight fraud.
The Fraud-Net.com database was developed as a means through which law enforcement agencies and the financial services industry can quickly report fraudulent activities that affect financial institutions. The system was created based on four ideas:
· losses related to fraud are staggering;
· no tool was available to combat fraud;
· a standard was needed for reporting these activities;
· and it was necessary to bring law enforcement agencies and the financial services industry together in the effort.
Fraud-Net.com allows bankers and law enforcement to post and read fraud alerts on a secure and searchable on-line database. The information is separated into categories based on region and the system allows users to search for information relevant to them. It compiles reports, and color copies of counterfeit checks, fake Ids, and fraud perpetrators’ pictures, in one location, instantly. Having this available to financial institutions and law enforcement across state lines is a powerful tool in fighting fraud.
In April, the SCBA trained more than 200 bankers and law enforcement officers at regional trainings featuring Tom Kerr, Senior Vice President & Chief Financial Officer, Florida Bankers Association. During the training, Kerr covered the Fraud-Net system, how to start the program, using the system and basic navigation, searching and working with other states. Kerr said there are more than 1.3 million log-ins a month on the Fraud-Net.com system and the average user time is twelve minutes.
The system, available at www.fraud-net.com, will enable the South Carolina banking community to have a standard for reporting and exchanging up-to-date information and is free of charge to all member banks and law enforcement.
“Joining together with law enforcement to help fight the growing battle against bank fraud will move us to another level in crime prevention,” said Lloyd Hendricks, President & CEO of the South Carolina Bankers Association, “Having other states in the network and being online provides new contacts and will enable us to catch criminals like never before.”
The system is very secure, professional and constantly administered. Fraud-Net.com is a secure website, using 128-bit encryption. An administrator must approve new users, and to prevent excessive alerts and irrelevant information from being posted, new alerts also must be approved. Even though users receive emails when new alerts are posted in their regions of interest, no sensitive information is ever sent through email.
An unlimited number of users from member institutions can sign up on Fraud-Net. Users within each organization will be assigned a unique ID and password. The unique security features of the system records each login, inquiry, deletion and/or change to the database with a date and time stamp for audit purposes. The Fraud-Net system tracks failed login attempts and records the accessing IP address and/or the user account being accessed. Upon 10 failed login attempts, the system will restrict access for the IP address and user account until the database administrator unlocks the account. This prevents “brute force” attacks by would-be hackers of the system.
After users get started with the system, an online help file provides users with a step-by-step guide to using Fraud-Net. The guide is also downloadable and printable. After signing up for Fraud-Net and using the system, bank security officers, law enforcement officers and others should find that Fraud-Net brings together the financial industry and law enforcement in a revolutionary new way to fight crime. The system allows users to search, post, read, print and receive alerts of fraudulent activity in areas of interest state and nation-wide.
The SCBA feels so strongly about Fraud-Net that it is being offered to all member banks and law enforcement at no charge.
A Strong Future
Both of these concepts, No Hats, No Hoods, No Sunglasses and Fraud-Net.com were out of the planning of the SCBA’s Bank Security Committee. The Bank Security Committee met numerous times to research, discuss and evaluate the pros and cons of each of the programs. Comparing the programs to similar concepts, these two developed a means through which law enforcement agencies and financial institutions could work together quickly to report fraudulent activities that affect the financial services industry. A special thanks goes to the Bank Security Committee for their time and talents to bring these programs to South Carolina.
The Bank Security Committee will continue to monitor the programs and the success they will have in South Carolina. To date more than fifty percent of our banks have signed on to participate in the programs, and we are excited about the momentum the programs have created. For more information on the two programs, to order supplies for No Hats, No Hoods, No Sunglasses, or to sign-up for Fraud-Net, please contact Anne Gillespie, Senior Vice President, South Carolina Bankers Association, at (803) 779-0850 or agillespie@scbankers.org.
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