​In the wake of the coronavirus pandemic is a tsunami of criminal activity designed to play on your members’ fears and distractions.  Perhaps one of the greatest threats is the use of phishing emails to attack members to gain access to all sorts of personal data and financial information.   On the heals’ of the formal FBI warning to all Americans about increased criminal attacks related to the pandemic, there are two prominent sources who see phishing emails as one of the greatest threats on the rise
 
Last week, an article published by The Hill noted that there had been an astounding 667% increase in phishing emails in the previous 30 days alone.  This article points out, “These types of emails try to lure individuals into clicking on dangerous links or download attachments that typically include computer viruses.”  The article also notes, “as the coronavirus crisis continues, researchers are expecting hackers to grow increasingly sophisticated at using coronavirus to lure individuals.”  Furthermore, The Hill reported that even the World Health Organization itself experienced an unsuccessful cyber-attack within the past few weeks, and they are seeing a dramatic increase in hacking attempts.
 
Another prominent subject matter expert on ID theft and data breach activities, Mark Pribish, notes in his recent newsletter, “the vast majority of data breach events are the result of phishing emails and not high technology hacking tools.”  Mark also references the 2019 Internet Crime Report in pointing out that “phishing scams were the most common type of internet crime last year where 114,000 U.S. consumers lost more than $57.8 million in 2019 as the result of phishing.”
 
Credit Unions have the opportunity to reach members and sound the alarm about this tidal wave of phishing emails coming at them, thus creating a powerful awareness moment.   It would be an incredible time also to consider how you might be able to bring members protective services with high-value propositions.  Your members need extra support and guidance during this unique time in our history and providing a positive service right now would also go a long way to increase their loyalty and engagement with your credit union.  

In December 2019, an article in CPO Marketing acknowledged that the FBI had issued a warning to the auto industry about being a target for cyberattacks. The U.S. automotive industry has become a target for cybercriminals because of the vast amount of personal data it contains. It is rare when you hear the FBI single out a particular industry followed with substantial warnings like this one, which says, "Automotive companies need to develop proactive defensive security measures to deal with all of the risks highlighted by the FBI warning." And ditto for the credit unions who work with auto dealers to be on guard and extend protections to their members.

Although this FBI warning went out to the auto industry, it affects more than just dealers. Credit unions who offer auto loans and members who receive financing are also at risk. The article mentioned above, clearly states that “In particular, when an enterprise shares data or partners with other organizations, it needs to be aware not only of the risk directly posed to its systems but the risk to its partners’ systems as well.”  The financial data of members is a part of the automotive industry’s growing risks, and members should be aware so that they can ask the auto dealers how their data is protected.  

Members also need to understand that identity theft is not just happening on debit or credit card transactions. Criminals are using stolen data to go beyond the typical financial transactions to pull off much more significant crimes.  For example, cyber thieves who use stolen identities for medical fraud and to make big-ticket purchases can create nightmares and years of torment for the victims. 

Compounding this specific attack on the auto industry and indirectly, your credit union, the COVID-19 pandemic has made the auto industry and other businesses even more susceptible to attacks, establishing an entirely new dynamic to the threats that already existed. Cyber thieves are using this time as an opportunity to attack while dealerships and other companies are hyper-focused on managing the effects of the coronavirus. As a result, another FBI warning has emerged about coronavirus scams and the need for vigilance and awareness as these attacks increase.

The current state of the world and anticipated new attacks are hitting very close to home for the credit union world, and it warrants a serious new assessment of your credit unions' overall cybersecurity preparedness. There is a new magnitude of fear and distraction within consumers (your members), and unfortunately, this creates the perfect feeding ground for criminals to attack.
Also, imagine the level of criminal activity that will happen when millions of Americans are sent government funds as part of the coronavirus stimulus package. It won’t take the ingenious criminals long to find a way to intercept funds or deceive recipients in some calculated scheme.  
 
All of this allows credit unions to be purposeful in reacting to the FBI warnings and to demonstrate their commitment to looking after their members' well-being. Many credit unions are putting into place a strategy of ID theft protection that provides a heightened level of protection for the whole credit union and its members in a manner that also increases member engagement.

In closing, it is another fantastic opportunity for credit unions to show how they care for their members beyond the walls of the institution and how they differentiate themselves in the financial industry.  Bring your members solutions that demonstrate the understanding of their growing risks and offer some expanded education & awareness.  They may not immediately connect the FBI’s warnings to the auto industry or about the COVID-19 pandemic to threats that pertain to them, so a credit union centric reminder could be just what members might need.  And giving the members a powerful, positive message in this time of fear and trepidation will solidify your relationship with them during the worst of times. Thus, making way for long-term success when the good times return.