Top Cybersecurity Threats That Could Cost You Thousands Every Year

As fraud evolves, your credit union must stay vigilant about cybersecurity by updating on threats, implementing robust measures, and educating staff and members. Cybercriminals use advanced techniques to breach systems. 

The good news is that new technology is always coming that offers better and better technology to combat fraud. Your role is to identify the most significant fraud threats to your credit union and its members to effectively address your credit union's needs.

Keep reading to learn more about the top cybersecurity threats that could be costing your credit union money every year. 

Top 5 Cybersecurity Threats That May Cost You Money This Year

1. Malware
2. Identity Theft
3. Payment Fraud
4. RDC Fraud
5. Card Fraud

Malware

In 2023, ransomware attacks costed $5.13 million on average. Malware, or malicious software, is a broad category of threats that can includes...

• Viruses
• Ransomware
• Spyware

It can infiltrate your systems through seemingly harmless downloads, emails, or websites.

Once inside, malware can lock sensitive data, disrupt operations, or even hold your credit union’s data hostage through ransomware. Recovering from such attacks can be costly, both in terms of lost member trust and financial damage.

Identity Theft

Identity theft is a major concern, with 60% of financial institutions losing over $500k to identity theft in 2023. Cybercriminals can steal personal information like social security numbers or account details from your members.

With stolen identities, they can open fraudulent accounts, make unauthorized transactions, and ruin credit scores. If your credit union’s systems are compromised, you could be liable for the resulting damages and face significant reputational harm.

Payment Fraud

As digital payment options expand, so do the avenues for fraud. Cybercriminals use stolen credentials to make unauthorized transfers or purchases, draining accounts in the process.

Payment fraud can also involve fake invoices or wire transfer scams, which can trick even the most cautious employees.

Failing to prevent this type of fraud could result in significant financial losses for both your credit union and its members.

Remote Deposit Capture (RDC) Fraud

RDC fraud occurs when members deposit fake or altered checks remotely. The rise of mobile banking has made RDC convenient but also a target for cybercriminals who exploit weak authentication methods.

Without strong fraud detection tools in place, your credit union could face the cost of reimbursing fraudulent deposits and absorbing the financial hit from bad checks.

Card Fraud

Card fraud, including both credit and debit card fraud, continues to be a major cybersecurity threat. Some of the tactics used to steal card information include...

• Phishing
• Skimming
• Account takeovers

Criminals can make unauthorized purchases, leaving your credit union responsible for covering the losses if proper security measures aren’t in place.

Protect Your Credit Union with FLEX Credit Union Technology

Cybersecurity is extremely important, but don't let it intimidate you. With FLEX, you have a partner that is extremely dedicated to helping you protect against fraud. 

At FLEX, we offer fraud detection and prevention through seamless integrations to help your credit union maintain member trust and avoid financial losses. 

Click the button below to download the FLEX Security Services eGuide to protect your credit union and its members.