Financial institutions have long been a favorite target of cybercriminals because of the data and financial windfall they can potentially obtain through their nefarious activities. Credit unions are particularly vulnerable within the financial sector and already, they have been subjected to various ransomware and malware attacks.
Back in March 2024, the nonprofit credit union US 1364 Federal Credit Union was hit by the ransomware Medusa. And just last month (June 2024), Patelco Credit Union, one of the country’s oldest credit unions, shut down several of its banking systems to contain a ransomware attack.
These are just the more recent incidents. It has been reported that around 60 credit unions in the US have been affected this year by ransomware attacks that have been directed towards a single IT provider, which happens to be the common IT provider for these credit unions.
Cybersecurity analysts have identified three key factors that have made credit unions a vulnerable target for these attacks:
Outdated technology - Unlike major banking institutions, credit unions are smaller, so they do not have the resources to set up updated security systems. Thus, many credit unions are using outdated systems that make them more prone to sophisticated cyber-attacks these outdated security systems cannot address.
Lack of an internal incident response plan – Because of their lack of resources, credit unions do not have an internal incident response plan since they are often forced to outsource help when incidents such as a breach occur. This can make it more challenging for them to respond immediately to a breach and cause systems to be affected for a longer period.
Not meeting cyber insurance requirements – Cyber insurance providers are expanding their requirements for organizations to qualify for coverage and many organizations, including credit unions, fall short of meeting these requirements which include the implementation of access management and providing employees with security awareness and training.
Industries with a network of companies in coopetition, often sharing certain technology services or vendors, like credit unions, car dealership, healthcare clinics will remain prime targets for ransomware and other cyber-attacks in the foreseeable future and it is critical for them to start improving their cybersecurity measures and ensure these measures are up to date so they can thwart these attacks effectively. Having a reliable cybersecurity provider who can provide immediate assistance is crucial in achieving these aims.
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