What does the Colonial Pipeline breach mean for credit unions?

Colonial Pipeline reportedly paid $5M to hackers to end the ransomware attack, but the attack has resulted in dire consequences for consumers including price spikes, fuel shortages, and panicked buying up and down the East Coast.

While the supply chain is straightforward, the protection of it is not. A complex web of technology and security controls left unmonitored leave businesses like Colonial Pipeline vulnerable.

The delivery of services to credit union members has a similar supply chain process, often supported by outdated technology and security. Members and businesses access their account in-person or online to process transactions, loan payments, mobile check deposits, report fraud, make ACH payments, and a host of critical functions required to manage personal and business needs and operations.

Every institution’s priority is to earn each member’s trust and constantly strive to exceed member expectations while not putting the institution at risk. When credit unions fail to invest in an innovative and prudent technology strategy that both harnesses the power of the platform and incorporates sophisticated security controls, a breach could result in a disruption to the supply chain that leaves members vulnerable and without access to critical financial functions.

 

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