Germs aren’t the only thing spreading this season – cyber threats are too.
Hyper-realistic phishing attacks, geolocation-targeted attacks, and breaches into highly sophisticated systems are spreading and causing cyberhealth to decline across America.
Two-thirds of credit unions report that they assume they could be the next victim of a cyber attack.1 That’s an astounding number of at-risk financial institutions! This truly is a vulnerable time for FIs, and it’s never been more critical to be aware of the trends and best practices in cybersecurity.
The question everyone seems to be asking is…
Is AI to Blame?
AI is rapidly evolving from its origins as NASA’s calculator in the 1950’s. As AI goes mainstream, it’s simplifying tasks for individuals and companies alike, but with convenience comes new risks. Fraudsters are leveraging AI to their advantage.
What is The Cost of AI?
AI is costly, and not in the way that you think. AI has a dark side and it could be costly for those caught unaware. Hyper-realistic AI generated scams are costing Americans and financial institutions alike the security of data. (We’re here to argue that it’s impossible to put a price tag on the cost of keeping data safe.)
As threats grow so does the risk of actual compromised data.
How is AI being used for fraud?
Generative artificial intelligence (Gen AI) is being used by fraudsters to bypass the odd, suspicious language we have been trained to be skeptical of and curate phishing messages free of broken English, incorrect tone, and typos. AI-powered deep fake messages (both voice and text) are highly convincing as legitimate. We know that vulnerable groups (such as English-As-A-Second-Language learners and the elderly) already fall for schemes and scams that are riddled with suspicious errors. How much easier it is to fool a population that’s been trained to identify these errors with scams.
Plus, the rise of geolocation apps and devices allows for another type of attack.
If the map app on your phone can predict your next stop based on your recent driving patterns, is it any surprise that the bad guys are leveraging these same geolocation tools to target their victims? Phishing attacks are now being customized to the victim’s location, increasing the believability of the scam.
Hear us out: We aren’t anti-AI. We are anti-fraud.
With thoughtful best practices and strong fraud prevention strategies, cyberhealth can be strengthened.
8 Best Practices to Keep your Data Healthy
- Maintain a mindset of alert skepticism: A handy rule of thumb is to verify, then trust. Users should verify each request for personal information before granting access or giving information, and financial institutions should be following a strict ZTA protocol for all points of entry.
- Active two-factor authentication on digital banking: MFA protects both user and provider against improper entry to digital banking apps and tools. Don’t simply recommend MFA to users, require it.
- Check if your data has already been compromised: Utilize the NPD Breach Check for concerns about breached information resulting from the recent hack.
- Lock down information access: Encourage accountholders and employees to place a freeze on their credit, lifting it only temporarily when absolutely necessary.
- Have a unique action plan before, after and during a breach: Review the requirements of the NCUA’s Information Security Examination Program and Allied Solutions’ Data Breach Protection for guidance.
- Use AI as fraud detection: Tailor-made AI detection and prevention tools help the banking industry fight fire with fire. Leverage AI in credit decisioning and voice identification to target fraudulent requests, real-time
- Stay informed to stay safe: Raising cybersecurity awareness among your leaders, staff, and accountholders will strengthen data hygiene for everyday users. Keep up with the latest trends with Fraud and Risk Alerts from Allied Insights.
- Create margin in the budget for fraud detection and security tools: The entire industry is increasing security budgets to invest in the health of organizational cybersecurity. The cost not to is higher. After all, the cost of securing data is immeasurable when compared to the damage of a breach.
Keep your data healthy this season! October is Cybersecurity Awareness Month. Stay informed and stay safe with more resources from Allied Solutions.