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In December 2019, an article in CPO Magazine acknowledged that the FBI had issued a warning to the auto industry about being a target for cyberattacks. The U.S. automotive industry has become a target for cybercriminals because of the vast amount of personal data it contains, and this is especially significant because the FBI rarely singles out a particular industry and issues substantial warnings like this one, which says, "Automotive companies need to develop proactive defensive security measures to deal with all of the risks highlighted by the FBI warning." Credit unions that work with auto dealers must also be on guard and extend protections to their members.
Although this FBI warning went out to the auto industry, it affects more than just dealers. Credit unions that offer auto loans and members who receive financing are also at risk. The article mentioned above clearly stated that, "In particular, when an enterprise shares data or partners with other organizations, it needs to be aware not only of the risk directly posed to its systems but the risk to its partners' systems as well." Members' financial data is a portion of the automotive industry's growing risks, and members should be aware of this so they can ask the auto dealers how their data is being protected.
Members also need to understand that identity theft is not just happening on debit and credit card transactions. Criminals are using stolen data to go beyond the typical financial transactions and pull off much more significant crimes. For example, cyber thieves who use stolen identities to commit medical fraud and make big-ticket purchases can create nightmares and years of torment for their victims.
Compounding this specific attack on the auto industry, and indirectly on your credit union, the COVID-19 pandemic has left the auto industry and other businesses even more susceptible to attacks, and added an entirely new dynamic to the threats that already existed. Cyber thieves are using this time as an opportunity to attack while dealerships and other companies are hyper-focused on managing the effects of the coronavirus. As a result, another FBI warning has emerged about coronavirus scams, signaling the need for vigilance and awareness as these attacks increase.
Concerns over the current state of the world and anticipated new attacks are hitting very close to home within the credit union world, and for individual credit unions, this warrants a serious new assessment of your overall cybersecurity preparedness. There is a new magnitude of fear and distraction among consumers – including your members – and unfortunately, this creates the perfect feeding ground for criminals to attack.
Additionally, imagine the level of criminal activity that will take place when millions of Americans are sent government funds as part of the coronavirus stimulus package. It won't take the ingenious criminals long to find a way to intercept funds or deceive recipients in some calculated scheme.
All of these likely scenarios require credit unions to be purposeful in reacting to the FBI warnings and demonstrate their commitment to looking after their members' well-being. Many credit unions are putting into place an identity theft protection strategy that provides a heightened level of protection for the whole credit union and its members, and as a bonus, helps increase member engagement.
Credit unions should also view this time period as a fantastic opportunity to show how they care for their members beyond the walls of their institution, and how they have differentiated themselves in the financial industry. Bring your members solutions that demonstrate your credit union's understanding of the growing risks, and offer them expanded educational programs to help raise their awareness of the risks. Members may not immediately make the connection that the FBI's warnings to the auto industry or about the COVID-19 pandemic are threats that in fact pertain to them, so a well-crafted, educational message from their credit union could be just what they need. And sending members a powerful, positive message in this time of fear and trepidation will help solidify your relationship with them during the worst of times. That, in turn, can help make way for successful, long-term member relationships when the good times are here again.
Jim McCabe James McCabe is EVP for Vero in Scottsdale, Ariz.
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