Top Cybersecurity Challenges Facing Credit Unions in 2024 and How to Prevent Them

Sponsored by Lynx Technology Partners, a CUES Supplier member 

Credit unions are a vital part of the financial system, providing financial services to millions of people around the world. However, they are also a prime target for cybercriminals, who are drawn to their rich trove of sensitive data, such as names, addresses, Social Security numbers and account information. In 2023, the National Credit Union Administration reported a 25% increase in cybersecurity incidents at credit unions. This trend is likely to continue in 2024 and beyond, as cybercriminals develop new and more sophisticated methods of attack.

In 2024, credit unions are expected to face several cybersecurity challenges, including:

• Ransomware. Ransomware is a type of malware that encrypts a victim’s data and demands a ransom payment in exchange for the decryption key. Ransomware attacks have become increasingly common in recent years, and credit unions have been a prime target.
• Phishing. Phishing is a type of social engineering attack in which cybercriminals attempt to trick victims into revealing sensitive information, such as passwords or credit card numbers. Phishing attacks can be very convincing, and even the most tech-savvy people can fall victim to them.
• Business email compromise. BEC is a type of phishing attack that targets businesses. Cybercriminals impersonate trusted vendors or executives and send emails that appear to be legitimate. These emails often contain malicious attachments or links that, if clicked, can install malware on the victim's computer.
• Internet of things security. The increasing use of IoT devices in credit unions poses new security challenges. IoT devices are often poorly secured and can be easily exploited by cybercriminals.

How to Prevent Cybersecurity Attacks

Credit unions can take steps to prevent cybersecurity attacks, including:

• Implementing a layered security approach. A layered security approach involves using multiple security controls to protect data and systems. This can include firewalls, intrusion detection systems, antivirus software and encryption.
• Educating employees about cybersecurity. Employees are often the weakest link in the security chain. It is important to educate employees about cybersecurity threats and best practices. This can include training on how to identify phishing emails and avoid other common scams.
• Keeping software up to date. Software updates often include security patches that can help to protect against known vulnerabilities. It is important to keep all software, including operating systems and applications, up-to-date.
• Monitoring systems for suspicious activity. Credit unions should monitor their systems for suspicious activity, such as unusual login attempts or network traffic. This can help to identify and respond to attacks early on.

In addition to the above measures, credit unions should also have a cybersecurity incident response plan in place. This plan should outline the steps that will be taken in the event of a cyberattack.

By taking these steps, credit unions can help to protect their members’ data and reduce the risk of cyberattacks.

Here are some additional tips for credit unions to prevent cybersecurity attacks in 2024:

• Use multi-factor authentication. MFA adds an extra layer of security by requiring users to enter a code from their phone in addition to their password when logging in.
• Segment your networks. Segmenting your networks can help to contain the spread of malware in the event of an attack.
• Use a cloud-based security information and event management system. A SIEM system can help you to collect and analyze security logs from across your network to identify suspicious activity.
• Conduct regular security audits. Regular security audits can help you to identify and fix vulnerabilities in your systems before they can be exploited by cybercriminals.

By following these tips, credit unions can help to protect themselves from the top cybersecurity challenges facing them in 2024 and beyond.

Lynx Technology Partners’ Director/Technology Risk Advisor, David Glaneman, CTPRP, has more than 25 years of IS and risk management services expertise. A CUES Supplier member, Lynx is a trusted partner in implementing governance, risk and compliance services that provide clients insight into what they cannot see, knowledge of what they do not know and solutions to their problems.