Digital Banking Security for Credit Unions

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A 2019 survey by GOBankingRates found that 42 percent of Americans said they are more afraid of someone stealing their bank account information than of not having a job. To ease the minds of members, credit unions must prioritize digital banking security. A number of digital tools can mitigate security risks and ensure online banking is safe. Learn why digital banking security is of paramount concern to credit union members and how to optimize platforms with digital tools to enhance their protection.     

 Is Online Banking Safe?

On July 19, 2019, Capital One discovered that a cybercriminal gained unauthorized access and obtained certain types of personal information about Capital One credit card customers and individuals who had applied for credit card products, leaving 106 million records exposed. Cybersecurity is a valid concern for banking customers, leading many to wonder if online bank accounts are easy targets for hackers. For credit union members asking if online banking is safe, the short answer is yes, as long as credit unions and members do their part. In addition to standard measures like firewalls, anti-virus protection on credit union computers, fraud monitoring and security training, here are some other steps and tools that can help credit unions and their members ensure digital banking is safe for all:

 Security Technology

Online banking platforms must be supported with security protocols that use the latest strong cryptography to transfer data. Encryption helps to not only create a secure environment for the information that is being transferred between a member’s browser and the credit union, but can ensure it is transferred only between expected parties. Not only does Lumin Digital use strong encryption to keep data safe, its cloud-native technology quickly detects and prevents anomalous behavior through data analytics and sophisticated cyber threat intelligence. Automated protection mechanisms allow for real-time responses to new and developing digital threats.

Secure Networks 

Credit unions must educate their members to think twice about using public Wi-Fi for online banking. On a public network, members can be tricked into giving up their digital banking credentials with man-in-the-middle attacks. The security of a private home network is ideal, or cellular data if possible. Members should also be advised to keep their operating system and anti-virus software up to date and to avoid accessing financial accounts from public computers or devices.

Password Strength

A Pew Research Center study found that many personal data breaches can be traced back to overly simple passwords. Credit unions can help their members choose stronger passwords by advising them to avoid the use of personal information, to choose passwords that aren’t easy to guess, to use a different password for each account and to never share passwords with others. Many web browsers now include built-in password managers that make it easy to manage unique, strong passwords for each site.  Banking institutions that use risk-based or offer opt-in mandatory multifactor authentication offer even more security by requiring members to enter another piece of data beyond something they know, their password, with something they unique they possess, such as a fingerprint for a mobile app.

Account Activity Monitoring

When members are able to easily access their account activity, they are more capable of monitoring transactions as frequently as possible and catching anything that looks suspicious. A member who signs up for text or mobile push alerts will know right away if something unexpected has happened to an account. By using an online banking platform outfitted with a personalized dashboard and the ability to turn credit and debit cards on and off and employing a stellar support team to respond to member concerns, credit unions are more likely to earn and maintain their members’ trust. After all, security is the top factor consumers consider when choosing a financial institution, so making security a top concern at your credit union is a wise choice.

Learn more about how Lumin Digital is helping credit unions make digital banking more secure for their members today.

Erica Garza is an author and essayist from Los Angeles. Her writing has appeared in TIME, Health, Glamour, Good Housekeeping, Women’s Health, and VICE.

References:

  1. https://www.gobankingrates.com/banking/banks/americans-dont-know-banking-basics/
  2. https://www.csiweb.com/resources/blog/post/2019/09/18/it-s-time-for-your-bank-to-host-a-cybersecurity-awareness-program
  3. https://www.pewresearch.org/internet/2017/01/26/2-password-management-and-mobile-security/
  4. https://thefinancialbrand.com/90248/digital-banking-customer-experience-security-online-branch/