The National Credit Union Association (NCUA) detailed that credit unions reported more than 1,000 cyber incidents in 2024. Credit unions being part of the financial sector makes them a target for cybercriminals. The data they store from customers can be very profitable for hackers, so credit union cybersecurity and IT are more important than ever.
In today’s blog, we’ll discuss the need for credit union cybersecurity, strategies to strengthen IT infrastructure, vendor risk management, and some best practices for credit unions.
The Growing Need for Credit Union Cybersecurity
Credit unions are targets for cyberattacks for several reasons. Credit unions have lots of sensitive customer data, are typically smaller than a regular bank, and may have a minimal IT and cybersecurity infrastructure.
Due to credit unions operating with limited IT and cybersecurity budgets, they are more vulnerable to phishing, ransomware, and insider threats. A comprehensive credit union cybersecurity strategy should focus on proactive threat detection, employee training, and continuous monitoring to maintain regulatory compliance and member data security.
With every app, online portal, and cloud integration, there is more added exposure and potential attack vectors for credit unions. Many don’t have full visibility into where data is going and who even has access. Most also lack 24/7 monitoring and threat detection. Without these alerts and detection, damage can multiply before anyone even realizes an attack has happened.
Photo by Sophos
Strengthening IT Infrastructure for Credit Unions
An effective credit union cybersecurity plan starts with a secure IT infrastructure. Defenses such as firewalls, endpoint detection, multifactor authentication, and network segmentation are ways to reduce exposure to attacks.
Regular system audits and patch management are critical to identifying vulnerabilities before they can be exploited. By aligning cybersecurity with operational goals, credit unions can enhance resilience while ensuring seamless service for their members.
Since most credit unions lack the budget to deploy an in-house IT team, we recommend finding a managed security service provider (MSSP). One that can cover your IT and cybersecurity needs and keep your members’ data as safe as a bank vault.
Vendor Risk Management: A Hidden Weak Point
Credit unions and other financial services work with lots of third-party vendors. Those same vendors could potentially lead to data breaches, operational disruptions, financial losses, and reputational damages.
The NCUA itself lacks authority over third-party vendors that credit unions may use. That may explain why 60% of cyberattacks reported to the NCUA involved a third-party vendor.
Vendor risk management must become a top priority for credit unions. This includes assessing vendor security policies, performing regular audits, and requiring data protection clauses in contracts. Ongoing monitoring helps ensure vendors are complying with industry standards and maintaining strong security postures, protecting both the credit union and its members.
Photo by FasterCapital
Building a Culture of Cyber Awareness
Sometimes, even the best technology cannot protect a business if employees are unknowledgeable about cybersecurity risks. Educating employees on evolving cybersecurity threats such as phishing and malware can lead to less human error and reduce cyberattacks.
Also, having proper channels to report suspicious activity and implement safe data handling practices will help create a proactive culture of cybersecurity. When everyone in an organization understands their role, the organization becomes far more resilient to evolving threats.
The Path Forward for Credit Union Cybersecurity
In an era where cyber threats are evolving faster than ever, credit unions can no longer rely on outdated systems or reactive approaches. The financial and reputational impact is simply too high. That’s why we recommend partnering with a trusted cybersecurity and IT provider to ensure your institution stays ahead of cyberattacks while maintaining compliance and members’ trust.
At Kirkham IronTech, we work with many financial service organizations, including credit unions. We offer proactive credit union cybersecurity and IT solutions that protect sensitive data, secure networks, and strengthen their IT infrastructure. From 24/7 monitoring to vendor risk management, our team helps credit unions build a resilient, future-ready infrastructure.
If your credit union is ready to strengthen its cybersecurity posture and gain peace of mind, contact us today. Our tailored services help give you a predictable and affordable way to secure your data, protect your members, and ensure your organization thrives safely in the digital era.
Tom Kirkham brings more than three decades of software design, network administration, and cybersecurity knowledge to organizations around the country. During his career, Tom has received multiple software design awards and founded other acclaimed technology businesses.
