Credit Union Proactivity Key to Thwarting Cyber Thieves

With 43% of cybersecurity attacks aimed at small businesses, credit unions must remain vigilant as cyber thieves are constantly working to undermine security protocols through back channels and hacked systems.

According to a new study by Juniper Research, cybercrime will increase 70% over the next five years. Additionally, the costs associated with these breaches will rise from $3 trillion annually to more than $5 trillion in 2024 – an average annual growth of 11%.

With cybercrime on the rise, NAFCU has kept a keen eye on this growing trend to better prepare credit unions to fight back. Not only do cybercrimes affect financial institutions’ bottom line – to the tune of $2.7 billion in 2018 – but they also undermine member safety and security.

At NAFCU’s Annual Congressional Caucus, Bill Evanina, director of the National Counterintelligence and Security Center, detailed the significance of these threats, outlined ways credit unions can shore up their lines of defense, and offered training programs and resources to help.

His message: “You are often times the victim [of cyber threats], we are asking you to be part of the solution.”

Since 2010, the number of credit union employees devoted to IT compliance has nearly doubled. But despite the fact that credit unions are taking impactful and important steps to ensure their institutions remain prepared in the event of an unexpected attack, cyber criminals are constantly evolving their tactics and finding new ways to infiltrate systems.

To help credit unions meet these challenges head on, NAFCU is committed to providing a robust set of resources and tools. In addition, NAFCU launched a new Task Force to formulate strategies for managing external cyber risks and to identify opportunities to enhance the protection of members’ information.

While NAFCU continues to work with the industry to ensure it stays one step ahead of potential threats, unfortunately, merchants and retailers remain less protected than financial institutions as they are not subject to the same robust federal data security requirements.

In a recent survey, NAFCU Research found that 82% of credit union respondents were impacted by a local merchant breach within the past two years. This is unacceptable, and Congress must act and implement comprehensive data security standards to better safeguard credit unions from cyber thieves while holding merchants and retailers accountable.

As credit unions’ Washington Watchdog, NAFCU will continue to fight for credit unions’ and their 118 million members’ best interests. That is why NAFCU will continue to advocate for comprehensive data security protections so that every company with access to consumers’ financial information – not just credit unions and other financial institutions – keep it protected from cybercrime.

As credit unions prepare their lines of defense, NAFCU stands ready to help and will continue to work alongside them to better protect their members from cyber thieves.

B. Dan Berger is President/CEO for NAFCU. He can be reached at 703-522-4770 or dberger@nafcu.org.