What’s one of the most important things credit unions have over banks? A personal relationship with your members built on trust. Your member loyalty is borne of the trust they invest in your institution.
The fastest way to destroy trust in a relationship? Insecurity. Or, in the case of a credit union, a security breach.
But there’s a way to reduce the risk of fraud. Using a blockchain-powered digital ID can provide your members with the security and convenience they need to keep their transactions safe and easy.
The New Landscape of Cyber Security is Treacherous
The usage of online and mobile banking has been on the rise for a while, but the COVID-19 pandemic accelerated that transition further. As many credit unions went branchless, they relied more on digital channels.
However, this exacerbated digital security problems. Problems that both credit unions and members alike would probably rather avoid.
Now that we’re a few months into the new way of things, do you know what your employees and your members are probably tired of?
Entering passwords and pin codes. Telling a stranger what their mother’s maiden name is and where they went to high school. Knowing they’re still vulnerable because bigger fish have already been fried by identity thieves.
Cyber Security is Easier to Crack Than You Might Think
Internet access is a necessity for the average person. Using online banking, bill pay, and communication is more often becoming the easiest, if not the only option. But the more we rely on the internet, the more information we put out there, and more vulnerable we become to fraud.
A smart hacker could easily figure out all of the answers to potential security questions.
Joe’s “about” page on Facebook lists his birthday, the name of his high-school and every town they’ve ever lived in.
His family relationships shows his dad’s middle name and mom’s brothers last name (who she shared her maiden name with).
Most of Joe’s passwords for online accounts are similar variants of his daughter’s name and birthday.
So, if a fraudster calls your credit union posing as Joe, how do you know it’s really Joe? He passes all your security measures with the information from a quick Google or Facebook search. That endangers both Joe, your credit union, and your credit union’s reputation.
The Best Cyber Security Is Decentralized Digital ID
Members fill out so many blanks online with personal information. Home and email addresses, debit card numbers, and usernames and passwords are set on autofill because there are too many to remember.
When members sprinkle the internet with crumbs of personal information, it’s not that difficult for a hacker to find the trail.
The solution? Stop sprinkling crumbs.
How? With Self-Sovereign Digital Identification.
What Is Self-Sovereign Digital Identification
Wait, what does that even mean? The “self-sovereign” part just means that a person owns and operates their own digital ID (DID). A digital ID is a block-chain enabled digital file of verified personal information.
DID grants members a global standard for a secure digital credential backed by blockchain technology. These IDs allow credit unions to confirm member identity effortlessly and with absolute confidence. Similarly, members may experience streamlined ID verification at your credit union and other participating organizations.
If you’d like to see more about how digital ID works, you can see more here. Or simply check out the posts below.