PALM DESERT, Calif.— With identity theft losses now exceeding $1 billion each month, credit unions have an opportunity to combat this rising threat, deliver meaningful protection to members, and strengthen their bottom line at the same time.
That was the key message from a session at the Defense Credit Union Council’s Annual Conference titled Increasing Your CU’s Non-Interest Income While Addressing Cyber Preparedness and Member Engagement, presented by James McCabe and Brian McEntire of Vero, LLC, a provider of identity protection solutions.
“We’re in a ‘cyberdemic,’” said McEntire, citing recent figures showing that identity theft losses reached $12.8 billion in 2024—a 20% jump over the previous year. “Fraudsters are faster, smarter, and using AI to make it worse. But there’s a way to fight back and add value to your checking accounts at the same time.”
As checking accounts face growing pressure from fintech competition—and many younger consumers no longer see them as essential—McCabe urged credit unions to rethink how they structure and price checking. Rather than offering them for free and absorbing rising fraud costs, he said, credit unions can add cybersecurity features that members are not only willing to pay for, but actively seek.
“This isn’t about charging a fee just to make money,” McCabe said. “It’s about delivering real value. You bundle in ID theft protection, dark web monitoring, credit alerts, mobile phone insurance, even telehealth or travel discounts—and you’ve got a product that can command $5, $6, even $7 a month and still be a bargain.”
McCabe said credit unions implementing this approach often see member adoption rates of 90% or more, and the monthly fee more than offsets the low cost of providing the benefits—generating up to $3 in non-interest income per account per month.
Filling The Income Gap
With several large credit unions approaching the $10-billion asset threshold—at which point they lose millions in interchange income due to regulatory caps—non-interest income is becoming critical. McCabe noted that Vero is working with several of these credit unions right now to implement checking enhancements that will help replace lost revenue.
“Smaller credit unions, too, are looking for sustainable income beyond loans,” he said. “This gives them a competitive edge, helps them survive, and actually deepens relationships with members.”
The speakers emphasized that cyber protection is no longer optional in a world of constant data breaches and fraud. But simply offering monitoring services isn’t enough.
“Monitoring is like a smoke detector,” McCabe explained. “It tells you there’s a fire—but what do you do next? That’s why fully managed recovery is essential. Members need someone to call who can fix it for them.”
He urged credit unions to consider bundling in essentials like VPN access, dark web scans, and recovery support into checking accounts. “It’s not just a perk anymore—it’s peace of mind.”
Meeting Members Where They Are
In addition to cybersecurity, presenters suggested credit unions add benefits tailored to real-life member needs—like roadside assistance, mobile phone insurance, and telehealth services—into checking accounts. These lifestyle perks, when delivered affordably, can make a credit union checking product far more compelling than a fintech alternative, McCabe said.
“People walk around with broken phones because they can’t afford to fix them,” McCabe said. “We can give them coverage for a few bucks a month, through the institution they already trust.”
The session made it clear: by aligning checking products with member needs—especially around cyber threats—credit unions can protect their members, drive engagement, and generate sustainable non-interest income.
“It’s not about selling a product. It’s about protecting your members—and strengthening your institution while you do it,” McEntire said.
Separately, Thursday’s events ended with DCUC’s 2025 Hall of Honor Gala and Speakeasy sponsored by Gallagher and Trellance.