On October 12, 2005, the Federal Financial Institutions Examination Council (FFIEC), the regulators overseeing banks and credit unions, communicated that passwords alone will no longer be acceptable as the sole means of achieving online security. The Enhanced Login Security was the solution and financial institutions must be in compliance with the terms of the FFIEC guidance by the end of 2006.

It is important that you read the following security message, especially if you currently use or are thinking about using our Internet Banking product. The following will go into effect on Thursday, December 14, 2006, once you login to Internet Banking. You will be required to set up "challenge questions and answers" to further protect your account.

Now, we’re implementing an additional layer of security to protect you from fraud.

Introducing new Enhanced Login Security, a free and easy way to help prevent fraud. Sign up once and you're all set. It’s that simple – the next time you log in, it’s business as usual. And the rest of your online banking experience will remain exactly the same.

This superior security technology protects your identity from whatever computer you're using, whether at home, at the office, or on the go. It identifies you as the true “owner” of your accounts by recognizing not only your password, but your computer as well. If your computer isn’t recognized by us – you’ve logged in from a public computer or one you haven’t used before – we’ll ask you to provide information that only you will know as an additional line of defense to prevent unauthorized access. Your identity is protected, and your peace of mind? At ease.

Just another example of our commitment to fraud prevention, everyday and everywhere.

There currently are fraudulent e-mails circulating that appear to be from the Credit Union National Association (CUNA), the National Credit Union Administration (NCUA) and the National Association of Federal Credit Unions (NAFCU) requesting personal account information. Please delete these e-mails, as they are fraudulent and phishing scams. Contact your credit union if you have additional questions.

NCUA, CUNA and NAFCU will NEVER ask credit union members for such personal information. Anyone who receives an e-mail that purports to be from NCUA, CUNA or NAFCU and asks for account information should consider it to be a fraudulent attempt to obtain their personal account data for an illegal purpose and should not follow the instruction in the e-mail.

If you responded to such an e-mail and provided any confidential account information, please notify your credit union immediately of the scam. You should also change your account's PIN, and take additional action recommended by your credit union to protect your account.

On October 28, 2004, the Federal Reserve Board will implement new regulation called the "Check Clearing for the 21st Century Act" (Check 21). This regulation is intended to make the movement of checks through the Federal Reserve System more efficient. It permits financial institutions to truncate (not return) paper checks and create a new negotiable instrument call a "substitute check." Substitute checks are legal equivalents of original checks and include all of the same information.

You will not see substitute check very often. But you may see them, for example, if you request a copy of a check or if a check is returned to you unpaid. To qualify as a substitute check, the document must contain an image of the front and back of the original check; include the MICR line information as it appears on the bottom of the check; conform to industry standards for substitute checks; and be as suitable for automated processing as the original. You can use the substitute check in the same way that you would the original check if it is an accurate representation of the original check and bears the statement, "This is a legal copy of your check. You can use it in the same way you would use the original check."

The most noticeable way that Check 21 affects you is that checks you write could clear sooner than before, increasing the risk that your checks will be returned if sufficient funds are not in your account when the checks are written. You are urged to always be sure appropriate funds are available in your account prior to writing checks.

Here are the Trade Commission's tips to stop identity theft:

• Order A Copy Of Your Credit Report from the three major credit bureaus once a year. Phony accounts in your name are likely to be listed.
• Put Passwords On Your Credit, Bank And Phone Accounts-and make them difficult to guess. Don't use your mother's maiden name, the last digits of your Social Security number, or consecutive numbers. Don't give your mother's maiden name on credit applications; give a password instead.
• Make Sure Personal Information Is Locked Up, especially if you have roommates or domestic help. Keep your purse or wallet in a safe place.
• Give Out Personal Information Over The Telephone Only When You've Initiated The Contact and you're sure whom you're talking too. Identity thieves may pose as workers from your bank or other businesses and agencies to get your personal information.
• Watch Your Mail. Don't leave sensitive letters in an unlocked box for your carrier to collect. Use a locked mailbox, and pick up mail promptly.
• Don't Let Your Trash Talk. Shred sensitive documents, including charge receipts and pre-approved credit applications.
• Lock Up Your Social Security Card. Give your number only when necessary, and ask how it will be used and protected. Don't give it if you're uncomfortable.
• Safeguard Computer Information: Keep virus protection software up to date and don't download files from strangers. Use a firewall program to deter hackers, especially if you have an Internet connections that is always on. Use a secure browser with high-level encryption for on-line business. Consider passwords to access sensitive programs. Before you discard a computer, use a "wipe" program to eliminate personal information.
  
  Source: FTC pamphlet "ID Theft - What's it all about?"