LAS VEGAS – Knowledge and awareness of fraud is the biggest deterrent to the threats credit unions face today, and they must implement comprehensive identity theft recovery management programs. That’s according to a breakout session on cybersecurity and data breachpreparedness at the Drive ’15: CU Direct Lending & Marketing Conference Thursday in Las Vegas.
Citing the Privacy Rights Clearinghouse, Mark Pribish, vice president and identity theft practice leader for the Phoenix, Ariz.-based Merchant Information Solutions, said there have been 4,503 breaches since 2005, and 70% are related to social engineering, with the other 30% related to hacking from outside organizations. In addition, he said data breaches cost organizations $201 per lost customer record, according to the Ponemon Institute.
Pribish also said credit unions need to educate their members about identify theft at small businesses – a key target for hackers. The best defenses against small business identity theft, he said, are web filtering, security software, and employee and customer education. He added that it’s critical for credit unions to be familiar with the security breach notification laws in the states where their members reside, so they can be clear on how to notify members and employees should a breach occur.
Jim McCabe, senior vice president of identity theft services for Vero, the identity recovery solutions arm of CU Direct, said to be fully prepared for identity theft, credit unions should implement a fully-managed recovery process that includes appointing an advocate who stays in regular contact with the victim up to one year following the incident.
He also emphasized the importance of distributing prompt, reassuring communication pieces to members in the event of a breach.
You need to send a communication that says, ‘Yes, you’re been breached, but guess what, you’re already protected, because we’ve thought ahead,’” McCabe said. “A letter that says, ‘We’ve got your back,’ is very effective.”
Vero offers IDProSelect and VBiz solutions, which help credit unions develop cybersecurity best practices. McCabe outlined the solutions’ benefits at the close of the session, and one audience member, Siouxland Federal Credit Union President Joel Steenhoven, said he feels they may meet his credit union’s needs.
“Our credit union has been looking at multiple cybersecurity vendors, and what stood out about this one is the fact it’s member-friendly and protects the credit union too,” the president of the $166 million, South Sioux City, Neb.-based credit union said. “We spend a lot of money on protecting our main frame system, but we don’t currently have a solution that protects our membership as a whole.”
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