TOPEKA, Kans.--Following a year-long Fight the Fraud campaign, Kansas credit unions saw legislative success in implementing fraud prevention measures as Gov. Laura Kelly signed HB 2591, America's Credit Unions reported.
The bill provides consumer safeguards and new tools to help credit unions better protect their members from fraud and the Kansas Credit Union Association advocacy team (a subsidiary of Cornerstone League) was on hand for the signing.
The association’s public awareness and legislative effort was designed to educate Kansans on how to protect themselves from common fraud schemes and to give financial institutions additional tools to help stop fraud before it happens. HB 2591 allows credit unions to establish a “trusted contact” program, giving members the option to designate a trusted family member or friend who may be contacted if the credit union suspects the member is the victim of a scam, ACU explained.
The legislation also establishes new regulations for cryptocurrency kiosks, which have become a major pipeline for fraudsters seeking to steal money from unsuspecting victims. HB 2591 will require kiosk operators to register as money transmitters, post clear warning notices on their machines, and create a withholding period during which customers may be eligible for a refund.