Help Protect Your Members From Identity Theft!

Having our personal information stolen from us is not something we want to think might happen to us, but as we’ve seen through many news stories in recent years, it can be incredibly easy for a thief to get their hands on it. The last thing anyone wants to hear is that their information, or even their identity has been stolen, and if the crime is not detected as soon as possible, a person’s financial situation can be quickly thrown into chaos. Credit unions have an opportunity to help ease some of that worry among their membership, and by doing so, build stronger trust and relationships with them.

Consumers Are Deeply Worried About Identity Theft

Back in May, a study conducted by the Benenson Strategy Group asked 700 adults about their concerns regarding cybercrime and identity theft. The survey found that 76% of respondents said that they were worried about identity theft, while 34% said they were very worried. Additionally, the fear of being a victim of identity theft outranked other common fears such as being in a car accident, getting injured or becoming seriously ill, and having their house be robbed. Consumers are also greatly worried about the impact with 49% having said their life would be significantly impacted if they were the victim of identity theft or cybercrime.

Where Is This Worry Coming From?

As previously mentioned, there have been many notable news stories that show how vulnerable certain organizations are to cyberattacks and hacking. These stories have certainly increased attention to cybercrime, but the biggest contributor to this increased worry is the frequency at which these crimes are happening. A March 2021 report from The Aite Group found that from 2019 to 2020, there was an estimated 42% increase in identity-related losses, indicating that identity theft and fraud has not only been rapidly increasing but will “continue to flourish” if left unchecked by businesses and financial institutions. Much of that increase occurred as more consumers switched to digital banking services over the course of the COVID-19 pandemic.

What’s more, many people still don’t know how or where to begin to protect themselves from these crimes and feel that they could become a victim at any time. They are also desperate for professional help in order to prevent fraud from happening, as well as help should their identity be compromised in any way. Credit unions can be that superhero for their members if they have the systems and protocols in place to guard against fraud and pick up the pieces if any damage does occur.

What Can Credit Unions Do To Help Their Members?

Fraud occurs in many different ways, so it’s important for credit unions to have a comprehensive strategy to counter cybercrime in whatever way the criminals decide to attack. One of first things your credit union can do is put stronger authentication methods in their digital banking services and mobile apps. These are just a few measures you can implement:

  • Avoid Public Information For Authentication: Identifiable information such as a person’s date of birth and Social Security numbers is also public information, and that means it’s easier for criminals to find, steal, and then pretend to be a member. Try to avoid using this kind of information as a layer for your security.

  • Mix Up Your Security Questions: You’ve probably seen many other websites ask you to set up security questions and enter answers to them in order to add an extra security layer to your account. It’s certainly not a bad idea because only you really know who you are, but it could be better. Most websites use the same basic questions, such as “What is your mother’s maiden name?” or “Where did you go to elementary school?” Try to come up with more unique and “dynamic” questions that are based around information that’s not so publicly known. The more unique the question, the harder it will be for a potential identity thief to find or guess the answer.

  • Educate Your Membership: When it comes to preventing fraud and knowing what steps to take in order to do so, education is key. Consider creating educational resources or host classes on identity theft and fraud protection on your website. You can also provide your own special tools for members to use in order to better protect themselves.

There will be times where, despite all the measures that you put in place for yourself and your members, fraud will still happen. When it does, it’s vital that your credit union is able to help resolve the issue and undo the financial damage, the process of which can be incredibly tedious, time-consuming, and difficult for the victim. If you are able to do that, your membership will be able to count on you should any cybercrime-related problem arise!

Previous
Previous

Loquat Chooses Acuant to Automate and Fortify Anti-Money Laundering Compliance for its Banking-as-a-Service Platform

Next
Next

VyStar CU Digital Banking Scenario Proves the Particular Importance of PR in Credit Unions