The President’s Perspective

Cybersecurity breaches are a threat to financial institutions; takeaways for Dakota credit unions. Plus, DakCU provides a solution for legal guidance in employment and labor law. 

What keeps you up at night?
Cybersecurity breaches have become a prevalent and increasing threat to financial institutions and corporations across the globe. Recently, the breaches at Patelco Credit Union and AT&T have highlighted significant vulnerabilities that should be of great concern to Dakota credit unions, and understanding the implications of these incidents is crucial for implementing robust security measures to protect member data and maintain trust.
 
The breach at Patelco Credit Union.
The Patelco Credit Union breach and the impact it has had on members has been the hot topic in the industry over the past week. Patelco, one of the largest credit unions in the country, experienced a major cybersecurity breach that compromised sensitive member information. The attackers gained access to personal data, including names, addresses, Social Security numbers, and account details. This breach underscored the potential risks associated with inadequate cybersecurity measures and the devastating consequences of data exposure.
 
For Dakota credit unions, this incident serves as a stark reminder of the importance of protecting member information. Credit unions often hold a significant amount of personal and financial data, making them attractive targets for cybercriminals. The breach at Patelco demonstrates that even well-established institutions are vulnerable, emphasizing the need for constant vigilance and proactive security strategies.
 
AT&T's cybersecurity breach.
In a separate incident, and one that hits home for me and my family, last week we learned that telecommunications giant AT&T also fell victim to a significant cybersecurity breach. This breach exposed the personal information of millions of customers, including names, phone numbers, and email addresses. The attackers exploited vulnerabilities in AT&T's systems, demonstrating that even companies with extensive resources and sophisticated security protocols are not immune to cyber threats.
 
For Dakota credit unions, the AT&T breach highlights the interconnected nature of cybersecurity. Many credit unions rely on third-party service providers for various functions, such as mobile banking and online services. A breach at a third-party provider can have direct repercussions on the credit union’s security. This incident underscores the necessity for credit unions to thoroughly vet their vendors' cybersecurity practices and establish stringent requirements for data protection.
 
The impact on Dakota credit unions.
The breaches at Patelco and AT&T provide key takeaways for Dakota credit unions.
 
1. Enhanced Security Measures. Dakota credit unions must prioritize the implementation of advanced cybersecurity measures, including investing in state-of-the-art encryption, multi-factor authentication, and continuous monitoring systems. Regular security audits and vulnerability assessments should be conducted to identify and address potential weaknesses.
 
2. Employee Training and Awareness. Human error is often a significant factor in cybersecurity breaches. Dakota credit unions should invest in comprehensive training programs to educate employees about phishing attacks, social engineering, and other common tactics used by cybercriminals. Creating a culture of cybersecurity awareness can significantly reduce the risk of breaches.
 
3. Vendor Management. As demonstrated by the AT&T breach, third-party vendors can be a weak link in the security chain. Dakota credit unions should establish rigorous vendor management protocols, including thorough due diligence and regular security assessments. Contracts with vendors should include clear cybersecurity requirements and incident response plans.
 
4. Incident Response and Recovery Plans. In the event of a breach, having a well-defined incident response plan is critical. Dakota credit unions should develop and regularly update these plans, ensuring that all employees are familiar with their roles and responsibilities. Additionally, a robust recovery plan should be in place to minimize downtime and restore services quickly.
 
5. Member Communication and Transparency. In the event of a breach, transparent communication with members is essential to maintain trust. Dakota credit unions should have a clear communication strategy in place to inform members promptly about any incidents, the steps being taken to mitigate the impact, and how members can protect themselves.
 
The recent high profile cybersecurity breaches serve as a wake-up call for all of us. These incidents highlight the pervasive nature of cyber threats and the critical need for robust security measures. By enhancing security protocols, educating employees, managing vendor risks, preparing for incidents, and maintaining transparent communication with members, Dakota credit unions can better protect their valuable data and uphold the trust of their members. In an era where cyber threats are ever-evolving, proactive and comprehensive cybersecurity strategies are not just advisable but imperative.
 
DakCU joins forces with DigiLend.
Last week, we shared details on our new partnership with CU DigiLend, an innovative technology platform that provides white-labeled solutions for credit unions. This collaboration will allow our Dakota credit unions to offer more flexible financing options to their members, in addition to supporting local businesses with seamless financing solutions.

This partnership marks a pivotal step in DakCU’s ongoing efforts to equip our members with the resources needed to thrive in an increasingly competitive financial landscape and supports our mission of “helping Dakota credit unions to succeed.” Please contact George McDonald to learn more.

Need legal guidance in employment and labor law?
Another ‘top of mind’ area that is keeping credit union executives up at night are labor concerns and HR issues. To help you in this area we have partnered with Jackson Lewis PC.

Jackson Lewis represents management exclusively in every aspect of employment, benefits, labor, and immigration law and related litigation. With 61 locations, including one in South Dakota, they provide local knowledge backed by the support of a national firm known for generating practical solutions for clients facing litigation. Watch for details coming soon for an upcoming webinar provided by Jackson Lewis on the latest in labor and employment law. Meanwhile, feel free to contact George with any questions. Our contact at Jackson Lewis is Chad Richter. He can be contacted directly at [email protected] or (402) 827-4233.

Update on CU4Kids Micropreemie Unit project.
As we announced earlier this spring, the CU4Kids Micropreemie Unit sponsored by North Dakota credit unions is moving ahead, with Sanford Children’s Hospital expecting to hold a ribbon cutting later this year. We have now exceeded $426,000 in pledges and are pleased to announce the most recent credit union to make a pledge, Railway CU in Mandan, ND.

When the project is revealed next year, there will be a dedication plaque acknowledging all contributing credit unions. There is still time to make a pledge and have your credit union’s name included for all to see as a sponsor. Please contact Shawn Brummer if you have any questions or would like to make a pledge.

On a side note, local TV news WDAY in Fargo frequently features stories about families being treated at Sanford Children's Hospital. Here is a link to one recent story about a family from Devil’s Lake that clearly illustrates the importance of the micropreemie project so these tiny miracles can receive treatment close to home.
Check it out here.

Foundation Golf Scramble & Professionals Forum less than one month away!
Registration is open for the Dakota Credit Union Foundation’s 8th annual Golf Scramble on Tuesday, August 13th in Fargo. Just this morning, Hometown Credit Union took the boxed lunch sponsorship; last week the Red River Chapter took the Hole in One sponsorshi. However, we still have many sponsorships available. Please consider supporting this great event for a great cause! Once again, 100% of proceeds will benefit Sanford Children’s Hospital in support of the CU4Kids Micropreemie Care Unit. I hope to see you there! Details and registration available here. This event is held in conjunction with the CU Professionals Forum, which takes place on Monday, August 12th. As always, the Forum is a FREE event for DakCU members, but we do ask you to please register in advance.

Watch for our new CU awareness ads – win some swag!
Next time you are filling your tank at your favorite gas station, keep your eyes on the video display at the pump for our new Gas Station TV (GSTV) credit union awareness ads running now through August 18 as part of our ramped-up State Wide Awareness Program (SWAP). The new ads feature fresh (and funny) videos from Try a Credit Union. In addition, our bright new electronic and stationary billboards went up on July 1st in targeted markets including Aberdeen, Bismarck, Huron, Fargo, Grand Forks, Minot, Rapid City, Sioux Falls, and Watertown.

If you happen to catch a GSTV ad, or pass one of our amazing billboards, snap a photo and share on Facebook or LinkedIn, tagging Dakota Credit Union Association. Alternately, you can simply email your pic to Shawn Brummer with permission to share directly on our DakCU social media platforms. Please tell us where (city) you saw the ad! Each response will be entered to win one of ten insulated cooler/grocery totes perfect for transporting your goods in the hot Dakota summer air! Enter by August 30 to be eligible for a prize.
 
Have a terrific week!

DakCU President/CEO