Credit Union Groups Are Bickering Over Cybersecurity Risk
Credit unions are in the third party security risk news again.
This time it’s for wanting Congress to allow the regulatory body that aims to protect credit unions to gain more ability to actually monitor and guard against third party risk emanating from credit unions.
The credit union lobby, however, not as supportive of this as you might expect claiming regulatory overreach. Debbie Matz, board chairman of the National Credit Union Administration, told Reuters the following in an interview:
Vendors are such an integral part of the financial services industry…We feel like our hands are really tied…Five (information technology) vendors serve over 50 percent of all credit unions, so there is tremendous inter-relationship and the possibility of contagion.
With the average total cost of a data breach global cost expanding to 23% since 2013, according to the IBM Ponemon Institute’s latest report, it’s no wonder the regulator is attempting to get a better handle on the security risks in third parties.