By Matt Baaki
October marks National Cybersecurity Awareness Month, a reminder that while it’s often viewed as an IT task, protecting member data is truly a leadership responsibility. For credit unions, where trust and reputation are inseparable from the member relationship, cybersecurity must be treated as a strategic necessity across the organization.
Cybersecurity as a Leadership Imperative
Many credit unions still view cybersecurity through a compliance lens, or as a series of boxes to check. But the reality is far broader, as cybersecurity intersects with member trust, brand reputation, and operational resilience. These risks are more acute than ever, with 76% of credit unions experiencing unauthorized network or data access last year, while cybersecurity was cited by 49% of leaders as a top concern, particularly in relation to fraud.
A data breach not only disrupts systems, it can also erode confidence that has taken years to build and, in some cases, permanently damage an institution’s credibility. That cost is especially high for community-oriented organizations like credit unions, with the potential to undermine the trust that’s central to how credit unions differentiate themselves from big banks.
The threat environment is constantly evolving, and the attacks that worked last year are now more advanced and harder to recognize. Between ransomware attacks, phishing campaigns, insider risks and vendor vulnerabilities, these persistent, real-world dangers are increasingly sophisticated and demand continuous vigilance.
Elevating Cybersecurity Conversations to Turn Awareness Into Action
Too often, cybersecurity is siloed within IT departments. However, to be effective, it needs to be a standing topic in the boardroom. Boards and executives should regularly review incident response plans, assess readiness and encourage a culture where every employee understands their role in maintaining security.
Leadership engagement also helps ensure that investments in cybersecurity are proactively supporting long-term strategic goals, rather than being driven by fear or recent headlines.
Some Practical Steps
Cybersecurity Awareness Month offers a natural moment for credit unions to reassess their preparedness and reinforce best practices. A few practical steps include:
- Refreshing employee training: Phishing and social engineering remain leading causes of breaches, but reinforcing awareness can significantly reduce risk.
- Revisiting vendor management: As credit unions rely on more third parties, it’s essential to maintain robust due diligence and monitor vendor controls.
- Running tabletop exercises: Simulating a real-world incident helps identify blind spots and clarify roles before a crisis hits.
While preparation doesn’t eliminate risk, it can dramatically reduce the impact when a cyber event occurs.
Balancing Innovation and Security, Strengthening the Foundation
As credit unions expand digital offerings, from interactive teller machines to mobile banking and AI-powered tools, these innovations bring forth both opportunities and new attack surfaces.
Security must be embedded into every technology decision, not bolted on afterward. This approach not only supports compliance but also demonstrates to members that their credit union is committed to protecting their data as diligently as it pursues growth.
Given these expanding risks, no credit union can handle the full scope of cybersecurity challenges alone, but partnering with experienced technology providers can help institutions address vulnerabilities, enhance monitoring and align operations with industry best practices.
Ultimately, cybersecurity cannot rely on a static state of safety. It demands a resilient organization that can adapt, respond and continue to protect member data while earning their trust in an ever-changing environment.
Move Beyond Compliance
This Cybersecurity Awareness Month, credit union leaders have a valuable opportunity to move beyond compliance checklists and make cybersecurity a true part of their strategic DNA. Doing so safeguards data while strengthening the foundation of member confidence on which every credit union is built.
Matt Baaki is chief technology digital officer at Member Driven Technologies (MDT).
