MADISON, Wis. (10/16/14)--The explosion of mobile devices and technological advances has significantly increased the risk of data theft at all businesses. According to a speaker at CUNA Mutual Group's Discovery Conference Wednesday, as organizations, credit unions are not immune to the growing risk.
"You work hard to earn the trust of your members, and every cyberincident attempts to erode that trust," said Jay Morgan, director of product management at CUNA Mutual Group. "The potential loss or impact to a credit union ranges from hard costs in revenue, legal fees, information technology and operations to significant losses in customer loyalty, brand reputation and employee morale."
In 2013, cyberrisk incidents totaled more than 61,000, with more than 800 affecting financial services organizations.
The average total cost of a data breach today is approximately $3.5 million, with the average cost of customer notification reaching almost $510,000.
These costs are leading to an interest in cyberliability insurance policies for transferring risk. "When you consider cyberliability insurance policies and the companies that offer them, credit unions also need to consider the tools and resources available to help you recover from a data breach," Morgan said. "All too often we find most organizations just don't know where to start when they suffer a breach."
Katherine Keefe, head of breach response services at Beazley Group, noted 31% of all credit union security and data breaches occurred as unintended disclosures, with an increase in malware activity.
"There is an uptick in social engineering with increased sophistication to target senior executives with very realistic emails from trade associations they belong to," she said. Lost or stolen laptops and mobile devices that are not encrypted sufficiently continue to raise concerns, she added.