$16 Million In Fraud from the Inside: A Walk Through NCUA’s Latest IG Report

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Mark Treichel walks through NCUA’s most recent Inspector General semi-annual report to Congress, covering the April through September 2025 reporting period. Seven credit union failures occurred during the cycle, with internal fraud driving the two largest losses for a combined total of more than $16 million. Mark breaks down the fraud triangle (pressure, opportunity, rationalization), examines what the failures reveal about supervisory committee performance, walks through the patterns NCUA examiners look for, and lays out a practical prevention playbook scaled to credit union size.In this episode:•        The seven credit union failures from NCUA’s most recent Inspector General report•        Why internal fraud accounted for the largest losses•        The fraud triangle and why opportunity is the most controllable element•        Record keeping failures as a force-multiplier for every other control breakdown•        The supervisory committee as the first line of defense•        What examiners pattern-match against during exams•        Prevention strategies for credit unions under $50 million in assets•        Prevention strategies for mid-size and larger credit unions•        The living fraud risk assessment: member risk, product risk, enterprise risk•        Why on-site exams will not be replaced by virtual examsMark Treichel spent 33 years at NCUA, including eight years as Executive Director. He is now principal of Credit Union Exam Solutions and host of the With Flying Colors podcast.