SAN DIEGO—Credit unions are giving members tools to combat data breaches, but are members using them to the extent that’s needed?
Experts have stated getting consumers actively involved in the fraud fight—educating them on how to protect their own data, persuading them to use card controls, and monitoring their account activity—is one of the best lines of defense.
Now a tool is available to credit unions that could encourage members to do that.
Al Pascual, COO and co-founder of Breach Clarity, along with security expert Jerry Van Dyke, have developed the Breach Clarity Score, which analyzes more than 1,200 data points to assess the specific risks stemming from a breach. The tool, which can be accessed via the web, allows consumers to enter the name of a data breach and get back several pieces of data. First, the site scores the level of the breach, using a scale from one to 10, with 10 being the most severe breach.
For example, the Equifax breach received a score of five, and Breach Clarity stating the Social Security number, date of birth, name, driver’s license, home address and phone number were the “likely ID records exposed in this hack.”
The site then recommends consumers freeze their credit report, set fraud alerts, get free credit reports and file taxes soon.
“Breach Clarity identifies and analyzes breaches affecting the consumer,” said Pascual, who noted the tool includes most breaches that have impacted U.S. consumers. “The platform factors the types of personally identifiable information (PII) exposed in any particular breach to predict the types of identity fraud risk it creates. It also generates recommendations on the most effective actions to mitigate both the consumer and the financial provider’s losses.”
Breach Clarity is free online for consumers to use, but a “premium” and more robust platform can be customized to the financial institution offering it, and then placed on the CU’s home banking application and within mobile apps.
Helping ‘All Parties’
Pascual said by FIs offering the premium solution can proactively address accountholder concerns before and after a breach occurs.
“Financial institutions are in a bad spot when it comes to data breach fallout,” said Pascual. “These breaches, most of which they have zero control over, are coming fast and furious, yet the actual damage can take years to occur. We first developed Breach Clarity to help the consumer fight back against the routine theft of their personal information. Now, we’re equipping their financial providers with much greater intelligence to help them strengthen everyone’s financial health.”
One important aspect of Breach Clarity, according to Pascual, is it can help all parties, including the credit union, understand the extent of the breach and assess the true threat to the business and account holders.
“Without a single, consistent way to measure the impact of data breaches, every breach feels like an emergency,” said Pascual. “There are high-profile breaches that are not as serious as they seem, and smaller, less-visible breaches that can be extremely dangerous. Couple that complexity with the growing frequency of data breaches, and consumers are left feeling confused, overwhelmed and even helpless. This often leads to inaction, or taking the wrong action.”
A Free ‘Widget’
Pascual stated that while many financial institutions have been offering assistance to members to engage them in the fraud fight—such as education to encourage members to watch for fraud within their own accounts and card controls, consumers have yet to aggressively take advantage of the services.
“But when the credit union inserts the Breach Clarity tool within their own website—it’s like a free credit score widget, when members click on it and use it, the recommendations we provide can be tailored to the credit union and the tools and education they offer to get members to enter the fraud fight,” explained Pascual.
“This is different than the credit union just letting members know they offer these tools,” said Pascual. “We are putting something in front of the member at the time they are thinking about fraud. And when members are part of the fight, the credit union can reduce the number of false positives and simply improve their image as a financial institution that cares about its account holders.”
Pascual said financial institutions pay a “nominal” annual fee—not disclosing the amount—for the service that’s based on the size of the institution.