Credit Unions Get Top Billing in Many Areas; Data Breaches Shouldn’t Be One of Them

No doubt, today’s technology makes our lives more convenient, people more connected and shopping more efficient. But it also shines a light on the critical need for strong data security. With so much vital information stored online and accessed through mobile devices, the risk of it falling into the wrong hands – intentionally or by accident – has never been higher. Financial Institutions make an attractive target as the guardians of money for three out of four U.S. consumers.

We live in a country with the dubious honor of having the highest percentage of data-loss incidents, according to an analysis by auditing firm KMPG International released earlier this year. In fact, nearly 50 percent of all lost data worldwide occurs within U.S. borders. Coming in a distant second is Great Britain, at 10.1 percent. That same report found financial services – along with government and technology – are the top three industries most at risk for exposure. Our industry’s most common cause of breaches? Hacking (35 percent) and fraud (30 percent).

Since 2005, the number of data records compromised in the United States has grown to 609 million, says the Privacy Rights Clearinghouse, a consumer education and advocacy project. And these incidents come with harsh side effects: bad press, reputation damage, loss of trust among customers and business partners. Add in reparation costs, potential fines and stiffer regulations, and it becomes clear that all credit unions – as well as businesses everywhere – would benefit from heightened loss-preventive measures.

Of course, it’s neither practical nor recommended to forego technology for information management – the advantages far outweigh the drawbacks. But it is imperative to establish a good understanding of the data risk existing within your systems and build robust protections into your processes. With today’s online fraud schemes and cyber attacks, financial institutions must take sensible measures to protect their data, in addition to being prepared in for potential compromises.

At DigitalMailer, we incorporate rigorous and comprehensive security practices to protect our clients and their data. Here are some recommended security protocols:

• Remain vigilant when using technologies such as USB Ports, Bluetooth connections and software downloads, as all have new areas of exposure.

• Protect every computer and mobile device – desktops, laptops, tablets, cell phones, company servers – with antivirus software, Internet firewalls, security suites, and encryption of sensitive information. Track who has access to the equipment at all times, and update and test security protections on all devices regularly.

• Review and update firewall protection on a continual basis, especially when new technology is added to your service.
• Enforce a “strong password” policy, requiring various character types, periodic updates, and restrictions on reusing old passwords or the same ones for multiple services.

• Eliminate automatic login for websites and email systems when accessed from any secure, certified websites or computers.

• Educate employees and members on fraud prevention, including reminders to not open emails or download attachments from unknown senders or unfamiliar addresses, and to never provide usernames, passwords, account numbers or personal information in an email message or pop-up window. Also require staff to ““log off” after using secure service sites.

Given our current environment, data breaches often aren’t a matter of if, but when. And if the statistics hold true, all financial institutions will remain prime targets for hackers and criminals. Don’t make it easy for them. It’s critical to continually be aware, to educate and to exercise caution to keep both your credit union and your member information as safe as possible.