Regardless of the industry, cybersecurity is becoming more important with each passing day. More and more enticing information is being stored digitally and shared via the Internet. Malicious attacks are increasingly covert and advanced. Deviant hackers are constantly innovating new schemes, making data breaches more common and potentially disastrous.
For financial institutions such as credit unions, the risks and potential ramifications of data breaches are more serious than in any other industry. Here are three reasons why cybersecurity should be top of mind for credit unions:
A National Association of Federal Credit Union survey in 2015 unearthed a handful of alarming cybersecurity statistics, including:
Costly data breaches such as the incidents at Target and at Home Depot not only grab headlines, but show that cybersecurity challenges are not going away anytime soon. The Wendy’s breach earlier this year seems to have hit credit unions particularly hard.
President Barack Obama and his administration have noticed, too. Obama’s recent Cybersecurity National Action Plan calls for a 35 percent increase in planned federal cybersecurity spending.
Considering the clear financial ramifications of data breaches, the National Credit Union Administration’s focus on strengthening its cybersecurity examinations makes perfect sense. But that realization alone doesn’t make the work that lies ahead for credit unions any easier.
The modern-day credit union needs to be prepared for questions about everything from electronic banking to information security programs and website compliance.
Credit unions can get ahead of the curve on these exams by benefiting from the NCUA’s hub of cybersecurity resources. Helpful tools include:
As the costs associated with high-end security technologies continue to soar, as does the need for information protection, the pressure mounts on credit union executives and managers to keep their networks cost-effective.
For example, a credit union with next-generation firewall technology can identify advanced malware and other malicious threats before they enter the network — adding a protective layer to the east-west data traffic that moves between machines and devices within a network. This is vital because 75 percent of all traffic in a typical network is of the east-west variety.
Unfortunately, next-gen firewalls with north-south (traffic that leaves and/or enters your network) and east-west capabilities typically require a minimum investment of $50K for software and hardware.
However, with innovative use of available security resources, credit union managers are finding ways to solidify security well within the scope of their budget. Solutions such as CUProdigy, a CUSO, that blend traditional network architecture with forward-thinking cloud platforms are making next-generation security much more attainable throughout the industry.
We’ve talked about blazing fast speeds before, and how they have become a necessity in today’s world. But what has the increased speed really brought us besides streaming movies and faster web browsing?
Two words: cloud computing. Record-breaking speeds have now allowed us to have virtual applications run on our computers through our web browser and Internet connection. Cloud computing opens the door to being able to run applications in our browsers without having to install a thing!
The possibilities are endless. Everything either is, or will be, in the cloud before we know it. CUProdigy, our web-based credit union management software, is no exception. We’ve built our software from the ground up with the option to be completely cloud-based, or to have it installed on an internal server at your credit union. Either way you take advantage of cloud computing in some form.
The advantages of cloud computing don’t end at just being able to access it through your browser. One of the most beneficial advantages is in recovery and backup. With our cloud-based solution your application exists outside of your branch without our temperature controlled environments. If your credit union goes down in flames (knock on wood), then your data and software is still safe. Backups are also processed on a regular basis, which provides an extra sense of safety.
Another big advantage is security. The “cloud” often has many people concerned about how secure their data will really be—our answer, very secure. Since we have many clients using our software in the cloud we are able to provide top-level support and security to each of them. With temperature and humidity controlled environments we ensure that your software is always running smoothly. CUDP also provides a high-level firewall and intrusion prevention to keep unwanted guests out.
With advantages like these it’s no wonder that 7 in 10 businesses are using cloud services and moving their data to the cloud. With CUDProdigy we make transitioning your credit union software to the cloud a simple and pain-free process. Cloud computing is the way of the future, and getting there with your credit union is as easy as that!
CUProdigy is in the unique position to help Credit Unions ‘Advance Beyond’ by providing a core processing platform that puts the member experience first. CUProdigy empowers credit unions with a comprehensive solution that is both robust and scalable.