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 it does. How often have you had to change your credit card numbers and passwords because of breaches or direct threats?

News reports regularly make clear how often cybercriminals are getting their thieving mitts on personally identifying information. The last thing anyone wants to hear is that some of their information, or even their entire online 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 that worry among their members, 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 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 their house being robbed. Consumers are also greatly worried about the impact: 49% said their life would be significantly affected if they were the victim of identity theft or cybercrime.

Where Is This Worry Coming From?

Results like the survey described above reflect a disturbing reality. 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 they could become a victim at any time. Many are also desperate for professional help in preventing fraud, 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 various ways, so it’s important for credit unions to have a comprehensive strategy to counter cybercrime. One of the first things your credit union can do is put stronger authentication methods in your 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 address are 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 Challenge Questions: Challenge questions are an easy way to add a layer of security.  Make good use of them. Most websites use the same basic questions, such as “What is your mother’s maiden name?” or “Where did you go to elementary based on information that’s not so easily known. You know, things that wouldn’t show up in a simple Google or social media search. 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, education is key. Consider creating educational resources or host classes on identity theft and fraud protection on your website. You can also provide special tools for members to use to better protect themselves.

There will be times when, despite all the measures you put in place, 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 can do that, your membership will count on you should any cybercrime-related problem arise, and that will go a long way to making your relationship with them even deeper and longer-lasting!