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In the last 10 years, 192 credit unions have failed and 78 of those failures were due to internal fraud, said Christopher Pippett, partner with Fox Rothschild LLP, in yesterday's NAFCU webcast.

Pippett said theft of cash from vaults and teller drawers, manipulation of employees and family member accounts, abuse of expense accounts and loan approvals and disbursements are all sources and types of internal fraud that can occur at credit unions.

He explained various credit union board challenges that could lead to "serious problems and threaten the viability of the credit union," include boards made up of micromanagers, and those that are outdated, stale or distracted. To avoid a "bad board," Pippett recommended credit unions have an active recruiting program, continuing education, regular evaluations and succession planning and term limits.

He also said it is up to credit union boards to make sure there are policies in place for random verifications of cash in vaults and teller drawers, surprise reviews of employee and family member accounts, verifications of loans and audits of elderly and deceased accounts, to help prevent internal fraud.

Pippett listed red flags that could indicate potential bad conduct, such as changes in behavior, life style and performance. He said if a notice of fraud has been brought to a credit union director's attention, that director must investigate claims, consider relevant information and act promptly.

The internal fraud that has taken place at credit unions since 2013 was also shared during Tuesday's webcast.

This webcast is part of NAFCU's Risk Webcast Series and will be available on-demand for a year. Credit unions can get these and more than 40 other webcasts on 10 compliance topics for just one price, with NAFCU's Compliance Webcast and Online Training Subscription.