NU 2026 Conference Test: Guarding from Within: Fraud Prevention & Effective Internal Controls

Thursday, June 18, 2026

Guarding from Within: Fraud Prevention & Effective Internal Controls
Mike Richards, CPA, Richards & Associates
Erin Brophy, COO, Richards & Associates

Fraud schemes continue to evolve, but many losses can still be traced back to the same underlying issue- weak or ineffective internal controls. Through a discussion format, Mike Richards, CPA, drawing on more than 50 years of auditing credit unions, and Erin Brophy, experienced in forensic audits and internal control reviews, will discuss how weaknesses in key operational areas create fraud opportunities and what supervisory committees can do to strengthen oversight.

Attendees will learn how effective internal controls support fraud prevention, fraud detection, and organizational accountability. The session will also explore the critical role supervisory committees play in identifying weaknesses, asking the right questions, and helping protect both members and the credit union.

Fields marked with an * are required.

Please verify that you have checked the “I'm not a robot” checkbox.

Internal controls are designed only to prevent fraud and have little value once a fraud has occurred.

A lack of segregation of duties can create opportunities for fraud and unauthorized transactions.

Independent review is one of the most effective internal controls for detecting errors and irregularities.

If a fraud loss occurs, bond carriers may evaluate whether appropriate controls and oversight were in place before determining claim coverage.

The supervisory committee's role is to perform operational functions such as approving loans and reconciling accounts.

Fraud often continues longer when control weaknesses are not identified, monitored, and addressed through effective oversight.