CUs told why businesses don't report cyber crime

GREENSBORO, N.C. (11/23/04)--Fear of negative publicity is the No. 1 reason that businesses do not report "cyber crimes," according to a Justice Department official.

Kimberly Kiefer of the U.S. Justice Department spoke to nearly 70 credit union security officials at the North Carolina Credit Union League Risk Management Council meeting Nov. 17 in Greensboro. Kiefer said cyber crimes often go unreported with only 20% reported to officers each year. According to Kiefer, 51% of the businesses interviewed that chose not to report security breaches feared negative media attention, and another 35% said they feared that competitors would use the information against them.

She stressed the importance of reporting fraud or suspected fraud as soon as it is detected. She also identified law enforcement agencies that could handle various types of cyber crimes.

Maj. Randy Powers of the Guilford County Sheriff's Department opened the meeting by spotlighting the increased amount of training and resources local law enforcement agencies are dedicating to fighting fraud.

The attendance was a record for the newly formed council, which was organized at the beginning of the year. "We have been astonished at how this has taken off," said Kim Bohannon, the league's assistant vice president of regulatory/compliance services. "Our credit unions asked for more assistance with fraud and security issues, and the attendance steadily rose as the word spread."

Ricky Spears of Allegacy FCU gave presentation on "phishing," the practice of using seemingly legitimate messages to fish for personal financial information for potential fraud or identity theft. He gave a detailed history of phishing and put together a phishing e-mail scam for the audience in less than 10 minutes.

"That opened some eyes," Bohannon said. "I think we were all a little surprised at how easy it is to put a very sophisticated scam together."

In addition to the free quarterly meetings of the council, the league organized an e-mail listserv for credit union security officials to share information and report fraud.

The North Carolina Credit Union League Risk Management Council executive committee includes, from left: Jan Duggins, Piedmont Aviation CU; Lin Jordan, Coastal FCU; Karen Daeke, State Employees CU; Jimmy Womack, Carolinas Telco FCU; and Kim Bohannon, North Carolina Credit Union League. (Photo provided by North Carolina Credit Union League)

More CU/System

Copyright © 2012 Credit Union National Association