Cybersecurity vulnerabilities among credit unions and their vendors create the potential for large financial impacts to the credit union industry, according to a Black Kite report.
The research analyzed the cybersecurity posture of 250 NCUA credit unions and 150 vendors commonly used by credit unions. Both credit unions and their vendors averaged a cyber grade of “B,” which indicates cyber breaches would require the skills of persistent, highly experienced hackers.
However, most credit unions and vendors experienced leaked employee credentials, employed poor software patch management practices, and used insecure email networks. These vulnerabilities create the opportunity for significant financial impacts if credit unions are attacked directly or via a third-party that has access to credit union networks.
The high risk of third-party attacks
Direct attacks to credit unions estimate an annual financial risk ranging from $190,000 for small credit unions to more than $1.2 million for large credit unions. Potential third-party attacks through credit union vendors pose a higher financial risk.
Researchers calculated that the financial impact of an attack on just one…
