From Passion to Purpose — and the Peril of Insider Fraud

5 snips

May 21, 2025

The host shares her exciting journey into fraud prevention and the launch of a consulting firm dedicated to helping credit unions. A shocking case of insider fraud reveals how trust can be exploited, with an operations manager embezzling over $65,000. Strategies for fraud prevention are discussed, emphasizing transparency, regular audits, and strong internal controls. The importance of collaboration between fraud teams and internal audits is highlighted, along with a call to action for fraud fighters to stay vigilant and proactive.

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ANECDOTE

Creative Fraud Education Example

Consumers Credit Union created a humorous series featuring 'Belvedere' the Sophisticated Fraudster to educate members.
Their creative approach includes a podcast that is top-rated for episodes about fraud.

ANECDOTE

Internal Fraud by Operations Manager

Kelly Jo Muzana, operations manager at Altana Credit Union, embezzled over $65,000 by stealing duplicate bank cards and making purchases.
She managed fraud claims herself to hide her crime until caught by an Altana customer report.

INSIGHT

Necessity of Fraud Team Transparency

Fraud prevention needs cross-functional collaboration, not isolation.
No one should investigate fraud they could commit; transparency is critical to catch misconduct early.

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Banking on Fraudology is part of the Fraudology Podcast Network.

In this powerful episode of Banking on Fraudology, host Hailey Windham takes listeners on a journey through the world of fraud prevention. She begins by sharing exciting news about the launch of her consulting firm, CU Fight Fraud LLC, dedicated to serving credit unions and community banks in their fight against fraud. Windham explains her passion for supporting these often overlooked institutions and highlights the importance of tailored fraud strategies.

The episode then takes a darker turn as Windham discusses a shocking case of internal fraud at Altana Federal Credit Union. She breaks down how the credit union's operations manager, entrusted with fraud prevention, exploited her position to embezzle over $65,000. This case serves as a stark reminder of the importance of internal controls and oversight in financial institutions.

Hailey offers valuable insights and actionable steps for preventing internal fraud, including regular access reviews, random audits, peer review processes, and fostering a culture of transparency and accountability. She emphasizes the need for collaboration between fraud teams and internal audit departments. The episode concludes with a powerful call to action for fraud fighters, urging them to remain vigilant, ask tough questions, and work together to build stronger defenses against both external and internal threats.

Tune in to Banking on Fraudology for an eye-opening discussion on the importance of internal fraud prevention and the passion that drives the fight against financial crime.

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About Hailey Windham:

As a 2023 CU Rockstar Recipient, Hailey Windham, CFCS (Certified Financial Crimes Specialist) demonstrated unbounding passion for educating her community, organization and credit union membership on scams in the market and best practices to avoid them. She has implemented several programs within her previous organizations that aim at holistically learning about how to prevent and detect fraud targeted at membership and employees.

Windham’s initiatives to build strong relationships and partnerships throughout the credit union community and industry experts have led to countless success stories. Her applied knowledge of payments system programs combined with her experience in fraud investigations offers practical concepts that are transferable, no matter the organization’s size.

Connect with Hailey on LinkedIn: https://www.linkedin.com/in/hailey-windham/