There is now a whole economy of cybercrime developing specifically targeting the financial services sector and its consumers. Phishing, Credential Stuffing and other web-based attacks have had a huge cost and impact on the industry...to the tune of nearly $3 million per minute! What can be done to protect your members and their information from a cyber attack and minimize the expense if one should happen? A combination of technology and education can be your best defense.

Cyber security restrictions and regulations have been tightening as procedures become increasingly reliant on technology. In the past several years, the financial services industry has endured more than a few data breaches. In 2016, credit unions and banks with less than $35 million in assets accounted for 81% of hacking and malware breaches. The aftermath of these incidents has led to stricter policies and higher expectations for member data security. Credit unions have been working to build a culture of cyber security that is ingrained in every stage of data storage and transit including in-branch and over networks. The National Cyber Security Alliance outlines a recommended process for identifying, protecting and detecting potential security risks, but it is equally important to have a plan in place should a breach occur. Here are some considerations for responding to and recovering from cyber security scares.

Recently Facebook experienced the largest one-day drop in history when it’s stock price plummeted $41.24, which turned out to be a decrease just shy of 20%. Facebook’s stock price has proven to be volatile throughout 2018 between decreasing user engagement, the Cambridge Analytica data breach, and Zuckerberg’s highly televised testimony to Congress. However, the biggest hit came at the end of July when Facebook released its Q2 earnings report, which unsettled investors once they saw a decline in active Facebook users, new obstacles emerging from Europe’s updated privacy laws, and concerns regarding the monetization of ads on Instagram leading to an overarching concern about Facebook’s potential profitability moving forward. Despite the variety of issues that led to Facebook’s demise in the stock market, the source of these problems all stems from one place: Security.

In 2017, the National Credit Union Administration developed a tool to help credit unions assess their level of credit union cybersecurity preparedness. Designed for the credit union industry, the Automated Cybersecurity Examination Tool is a great resource to help credit unions to evaluate their preparedness. However, in 2018 the NCUA is using it to review credit unions larger than $1 billion in assets and will be refining the tool to see if it will scale properly for small and medium-size credit unions. With this tool on the map for all credit unions, what should we know now?