Credit Union Website Legitimacy and Share Insurance
When performing transactions on your credit union's website, it's wise to make sure that the website is legitimate and that your deposits are federally insured. Here are some tips specifically designed for members to consider when performing credit union transactions over the Internet.
Read key information about the credit union posted on its website.
Most credit union websites have an “About Us” section or something similar. You may find a brief credit union history, its name and address, and information about its insurance coverage.
Protect yourself from fraudulent websites.
For example, watch out for copycat websites that deliberately use a name or web address very similar to, but not the same as, that of a real credit union. The intent is to lure you into clicking onto their website and giving your personal information such as your account number and password. Always check to see if you have typed the correct website address before conducting any business.
Check the credit union's insurance status and website address.
To check a credit union's insurance status, look for the official NCUA logo or the words “Insured by NCUA” on the website. To independently verify a credit union's insurance status or website address, you can check NCUA's online database of credit unions. From the “Find a Credit Union” page, enter the first letters of the credit union's name or the city and state and click the “Find” button.
A positive match will display the credit union's information, including website address ("URL"), on the screen. The credit union type code also appears. This code indicates whether NCUA insures the accounts at the credit union. There are three different credit union types:
- Federal credit union (NCUA insured)
- Federally-insured state-chartered credit union (NCUA insured)
- Non-federally insured state-chartered credit union (not NCUA insured)
Please remember that not all credit unions operating on the Internet are insured by NCUA. Only federal credit unions and federally-insured, state-chartered credit unions are insured by NCUA. Check with your credit union or NCUA if you are not sure of your credit union's insurance status.
Realize that not all financial services offered via a federally-insured credit union's website are necessarily NCUA-insured.
The NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these nondeposit investment or insurance products are sold at a federally-insured credit union. Credit unions often provide these services to its members through third-parties. The nondeposit investment and insurance products offered by third parties are not insured by the National Credit Union Share Insurance Fund (NCUSIF). In locations where nondeposit investment and insurance products are recommended or sold to members, credit unions are required to disclose that the products:
- are not insured by the NCUA;
- are not deposits or other obligations of the credit union and are not guaranteed by the credit union; and,
- are subject to investment risks, including possible loss of the principal invested.
In addition, the NCUA does not insure safe deposit boxes or their contents. The NCUA does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government.
Remember that non-financial websites that are linked to your credit union's site are not NCUA-insured.
As an added convenience to their members, some credit unions offer on-line links to other sites. An outside company's products and services are not insured by NCUA, and your credit union may not guarantee the products and services. As in everyday business, before you order a product or service on-line, make sure you are comfortable with the reputation of the company making the offer. Only then should you give out your credit card or debit card number. Never provide personal information to a third party unless you initiated the transaction.
Keep Your Transactions Secure.
The Internet is a public network. Therefore, it is important to learn how to safeguard your credit union account information, credit card numbers, Social Security number, and other personal data.