Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Study of victims shows how to handle a data breach
SAN FRANCISCO (6/24/08)--When a data breach occurs, what do consumers expect of their financial institution? A recent study indicates that offering a preventative solution for the future--without being asked to do so--helps ease any loss of confidence from a data-breach victim. Javelin Strategy & Research, a San Francisco based research of financial services topics, surveyed 400 data breach victims about their expectations for the breached institution. More than half (55%) of consumers who had experienced a breach expressed diminished confidence in the organization's ability to protect and manage their personal data. When consumer confidence is shaken, it weakens relationships with the institution, said Javelin's report. Fifty-six percent of data breach victims favor a solution that prevents fraud, Javelin said, who added that these efforts will help mitigate any decreased confidence related to a breach:
* Contact the member/consumer; * Create an audit trail that law enforcement can use; * Preserve the member/consumer's privacy; and * Prove that the solution works.
Providing a fraud solution makes a difference in customer approval of a breached organization's management and handling of the incident, said Javelin. Of those who were offered a fraud protection solution, 55% were more satisfied with the institution's handling of the incident than were consumers who were not offered the solution. Javelin made these recommendations:
* Given the variety of fraud-protection solutions and their varying features, engage in comprehensive research of the services available to understand how they play a role in prevention, detection and resolution of fraud. * Select a solution that is convenient and easy for the breach victim, both in terms of enrollment and use, with an understanding of the impact on prevent new accounts fraud. * Understand that offering a breach solution is a "best practice" from a member/customer service standpoint. Avoid creating a situation in which members and/or employees have to ask for fraud protection assistance. Take the proactive approach and offer the assistance up front.
For more information, visit the resource link.
Other Resources

RSS





print
News Now LiveWire
Registration now open for @CUNA @WOCCU summer conference in Denver July 12-15 http://t.co/opq1jypsXL #ACUC #CUinDenver2015
1 hour ago
Emergency loans post- #Blizzard2015 offered by @ScientFCU in Conn. http://t.co/U9tIBzPOZV
2 hours ago
Did you get your spot in the @CUCB #CherryBlossom 10 Mile Run? Check lottery results here http://t.co/6rxT0osyWJ @CU4Kids @CMNHospitals
2 hours ago
@FamilyFirstFCU has implemented a grant program through the FHLB of NY to help first-time home buyers.
3 hours ago
#BREAKING: @federalreserve offers few new hints on rate-hike timing in policy statement http://t.co/lgZ6zZ1Vrr
3 hours ago