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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