Data Security Best Practices for Credit Unions

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Credit unions often serve some of the most vulnerable businesses in their communities. About 50% of small businesses that have a data breach in their operations will close permanently in the following 6 months. While credit unions may not fold so easily in the midst of a cyberattack, it’s still important to have excellent data protection protocols and contingency plans in the event that your data is hacked or compromised, and it’s not just for the benefit of your IT managers. Adopting credit union data security best practices can curb the risks associated with the storage and curation of sensitive customer data.

Data security is an ever-evolving and often underestimated superpower in the financial world. There are many great ways to improve your data security. 

Barriers to Entry and Enhancement

Protecting your data, while always a worthy investment, is often very expensive, especially for smaller institutions. Onsite data protection is a great start, but the events of 2020 have also shed light on the many business’s shortcomings in the online data security arena. Without proper training and monitoring, employees can also easily perform unsafe data handling. As email scammers and hackers get more creative, the chances you or your business will be a victim of a cyberattack only grows.

Recognize potential threats

The first thing you should do is check your weak spots: gather a list of information that is most valuable to scammers. Knowing what the high-risk data is, and where it’s stored, is half the battle, as they say. Creating protocols and programs that scan for these valuable tidbits is a great way to pull this information together quickly and precisely.

Potential threats can also include older technology, like employees who leave login credentials or other access information somewhere easily accessible or noticed. Just because it’s not stored in a sophisticated and expensive device doesn’t mean it can’t be used to wreak havoc on your business.

Put Your Guard Up

Once you’ve identified your top targets, it’s time to reinforce them. Encryption is a common tool for protecting sensitive information, and it can be used on many fronts. Leverage tools like the ACET to set standards and controls that install safeguards against bad actors on your systems.

Diversify your approach using malware defenses, continuous monitoring systems, employee procedures, and the like. Your outside vendors are also common entry points for cyberattackers. Make sure your protections extend to these dealings as well. 

Don’t forget to test your systems. Remember school tornado drills? It’s wise to practice these protocols in a controlled environment to be sure your institution is prepared for the real deal.

Conclusion

Credit union data security is an industry that evolves at breakneck speeds. A system that worked perfectly last year could leave dangerous gaps in your cybersecurity offerings this year and it is wise to keep an eye on new trends both in cybercrime and in the tools industry leaders are using to mitigate the risks.

Cybersecurity maintenance is a continuous and all-encompassing endeavor. Contact us for help, we can protect your data and meet your cybersecurity needs.

Leveraging the ACET to Advance Cybersecurity

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People choose credit unions because of their customer service, accessibility and focus on its members. Credit unions instill a sense of trust and loyalty by creating customer-friendly relationships and ensuring members their money is safe. To nurture that trust, it’s essential for you to do everything possible to keep information safe. 

Examining protections and operations

Credits unions are still financial institutions that must have the same protections as any bank. In setting standards and controls to install safeguards against bad actors, more credit unions are embracing the Automated Cybersecurity Examination Tool (ACET), provided by the National Credit Union Administration. The ACET assesses how each institution prevents and prepares for cyberattacks and threats through a standardized examination of nearly 500 questions and 200 documents required for submission. 

Based on the Federal Financial Institutions Examination Council’s (FFIEC) Cybersecurity Assessment Tool, the ACET improves and standardizes how the NCUA supervises cybersecurity for all federally-insured credit unions on a rolling basis. It basically helps determine a credit union’s exposure to risk by identifying the type and complexity of operations, as well as the level of risk and corresponding controls. The ranking ranges from baseline to innovative.

Last year, NCUA used the ACET to assess credit unions with more than $250 million in assets and will continue to deploy an updated version this year for credit unions with assets over $100 million. Ultimately, the exam will be scaled to the size and risk profile of the financial institution. Starting in 2022, maturity assessments will be done once every four years.

Improving the maturity of your cybersecurity

A lot of attention has been focused on how to prepare for the assessment, but your team should also be focusing on ways to improve cybersecurity maturity. The ACET uses the same maturity levels as the CAT: Baseline, Evolving, Intermediate, Advanced and Innovative.

Business people analyzing financial dataThe question becomes, what technologies are you implementing to move beyond the baseline and into an advanced and innovative tier. What technologies are being used to reduce risks and attacks while also increasing ease of oversight and collaboration. Additionally, what practices and processes are in place to protect data, infrastructure and information? 

Resilience entails everything from planning and having continuous, automated backup protection to mitigation and recovery during a cyber incident. 

What steps are you taking to ensure your systems and data centers are hosted offsite and within cloud environments? What type of ransomware recovery is in place? Is your IT team spending more time managing complex legacy systems?

The ACET is an opportunity to do more than answer questions but also take steps to evolve your backup and recovery process. Ultimately, an investment in the right system will go a long way in building trust and strengthening relationships with members.

We understand that cybersecurity compliance can be costly, which is why specialize in providing the best and most cost-effective services for credit unions. Let’s find the right solutions for your credit union.