Credit unions are targeted by cybercriminals looking to exploit hidden flaws existing in their systems. Credit unions, which are member-driven financial cooperatives, typically engage with confidential information, such as financial records, payment details, and personal details. This, in particular, makes them appealing to hackers who use complex methods like advanced persistent threats (APTs), phishing, and ransomware to get past security measures and steal sensitive information.

It is no longer news that cyberattacks targeting banks and other financial organizations have increased dramatically. In 2022, financial institutions reported losses surpassing $10.3 billion, a figure that has continued to climb in successive years, according to the FBI’s Internet Crime Complaint Center (IC3). Credit unions are a prime target for cybercriminals because they lack the cybersecurity resources of bigger banks. Nonetheless, employing a proactive approach to cybersecurity might just be the needed armor to take your credit union out of a heightened risk.

What are Cybercriminal Tactics?

Cybercriminals use a range of advanced strategies to get past security systems, pilfer private data, and cause activities to be disrupted. For your credit union to successfully identify and guard against these strategies used by attackers, you must first understand them. Among their most used tactics, here are four prominent strategies employed by cybercriminals:

1. Phishing: Phishing attempts to deceive victims into divulging important information like login credentials, financial details, or credit card numbers. To attack your members, cybercriminals may send phishing emails, texts, or even phone calls pretending to be from your credit union to trick members into giving up their personal information.
2. Distributed Denial of Service (DDoS): The damage caused by a (DDoS) attack can affect your operational capacity and the trust of your members. These attacks entail sending an excessive volume of traffic from various sources to a credit union’s network, infrastructure, or online services, resulting in outages or total inaccessibility.
3. Ransomware: Ransomware is malicious software that exploits vulnerabilities in your credit union’s network, encrypting data and blocking access until a ransom is paid. These attacks not only disrupt operations and jeopardize data security but also erode member trust, causing financial and reputational damage. According to a recent Splunk study, 43% of ransomware-affected companies have had data or systems held for ransom.

4 Ways to Detect Cybercriminal Activity

Cybercriminals will always try but you can protect your credit union by implementing an all-encompassing cybersecurity plan with advanced detection systems to guard against these threats. Below are 4 key ways to help detect cybercriminal activity:

1. Advanced Threat Detection Technologies: Ensure your credit union invests in cutting-edge threat detection systems that can leverage artificial intelligence (AI) and machine learning (ML) systems. The system should also be capable of real-time data analysis, spotting unusual behaviours and anomalies that might indicate a cyber attack.
2. Regular Vulnerability Assessments: These are key to keeping credit unions secure. Regular assessments can allow you to uncover and fix potential security gaps before cybercriminals exploit them. To ensure a comprehensive defense, your evaluations should combine the precision of automated scans with the depth of manual penetration testing. This will offer a proactive shield against emerging threats.
3. Security Information and Event Management (SIEM): SIEM systems provide an all-encompassing picture of possible threats by aggregating and analysing security data from across the organisation. SIEM systems will help you identify and manage cybersecurity risks and ensure the safety of your sensitive financial data.
4. Utilize Intrusion Detection and Prevention Systems (IDPS): IDPS are tools that monitor network traffic and identify suspicious activity. This makes them highly relevant for credit unions as they can help you handle sensitive financial information and maintain robust cybersecurity to protect your member data and financial assets.

Conclusion

As cyber threats continue to evolve and target financial institutions, credit unions must remain vigilant and proactive in their cybersecurity efforts. The tactics employed by cybercriminals – from sophisticated phishing schemes to devastating ransomware attacks – pose significant risks to both the operational integrity and reputation of credit unions. Understand these threats and implement robust detection methods, to significantly enhance your cybersecurity posture. 

Remember, cybersecurity is not a one-time effort but an ongoing process. As cybercriminals adapt their tactics, you must continuously update and refine your credit union’s security measures. Furthermore, by staying informed about the latest threats and investing in cutting-edge security solutions, your members’ sensitive data can remain protected while you maintain your members’ trust, and ensure the continuity of your operations.

Ultimately, a proactive and multi-layered approach to cybersecurity is not just a technical necessity – it’s a fundamental aspect of a credit union’s commitment to its members and its long-term success in the face of evolving cyber threats.