Trusted News for Credit Union Leaders
Credit Union Times
JULY 6, 2016 | VOL. 27 | NO. 22 | CUTIMES.COM
CYBERSECURITY
2016 Breaches Mounting
The total reported breaches captured in the San Diego-based
Identity Theft Resource Center
2016 Breach Report hit 500 as of
mid-year, about 20% higher than
last year’s record pace for the
same period.
The sum of reported records
exposed, as of June 28, totaled
12,777,337. However, that only
tells part of the story. CEO spear
phishing breaches continued to
represent nearly one-third of the
total breaches reported, according to the ITRC.
In April, the FBI warned about
a dramatic increase in so-called
CEO fraud email scams in which
the attacker spoofs a CEO message and dupes someone at the
organization into wiring funds to
the fraudsters. The FBI estimated
these scams cost organizations
more than $2.3 billion in losses
over the past three years.
Year-over-year, breaches in the
education sector were up 70%
over 2015 figures, followed by the
business sector up 36.7%, and the
medical/healthcare field up 18%.
The government/military sector
continues to show a decline from
last year’s figures, down 6.7%,
with the banking/financial/cred-it category down 65%.
The five industry sectors broke
down as follows:
•;Business;=;46.4%
•;Medical/Healthcare;=;33.5%
•;Educational;=;11.4%
•;Government/Military;=;5.8%
• Banking/Credit/Financial =
3% Y16
Congress
Considers
Five-Seat
NCUA
Board
DAVID BAUMANN
dbaumann@cutimes.com
ouse Financial Services Chairman Jeb
Hensarling’s proposal to expand the
The proposal — part of the Texas Republican’s ambitious Dodd-Frank overhaul — could rear its
head next year, when Congress
will have time to debate such ambitious plans.
In;addition,;the;GAO;is;investi-gating the issue of regulatory capture among financial regulators,
including the NCUA. Supporters
of expanding the NCUA in the past
have cited board independence as
a reason for converting the board
from three members to five members. The number of board members could be raised in the context
of ensuring a broad spectrum of
representation.
However, even though it won’t
become law this year, the plan already is sharply dividing the credit
union community.
NASCUS lined up sup- Y15
Must Reads
bout two hurricanes
hit the United States
every year, according
to the National Oceanic and Atmospheric Adminis-tration.;And;according;to;FEMA,
only 11 states avoided their
wrath between 1851 and 2012:
The rest either bore the brunt of
the storms or fell prey to their aftermath.
That puts a lot of credit unions
at expensive risk, considering the
average hurricane causes $1.8 billion in damage.
But simply having a business
continuity plan doesn’t mean a
credit union is ready to take on a
hurricane. Here are a few big mistakes that could leave any credit
union underwater.
Mistake #1: Only focusing on
the buildings.
“Surprisingly enough, with a
hurricane the biggest issue most
people are going to have is power,”
Agility;Recovery;VP;and;General
Manager;Paul;Sullivan;said.;Dur-
ing Superstorm Sandy, he noted,
60% to 70% of Agility’s clients
had power issues but no struc-
tural damage. About half of Agil-
ity’s clients are banks and credit
unions, according to the compa-
ny’s website.
Sullivan recommended either
buying a generator or having a
contract in place with a vendor
who will guarantee delivery
DISASTERS
Five Hurricane Planning Tips
TINA OREM
torem@cutimes.com
Y17
FOCUSREPORT:
GOVERNANCE
& VOLUNTEERS
As more baby boomer CEOs are replaced by Gen X, credit
union boards must determine what qualities are needed to
lead their cooperatives into the future. Boards must also
adjust to increasing fiduciary liability and other governance
risks. Learn more in this Focus Report. Y8
LEGISLATION
Stepping Up
Cybersecurity
Try a four-step,
closed-loop
process. Y12
Summer
Attacks
Learn the five top
threats to watch
for. Y6