Plugging the Holes: Ten Trends Affecting Online Security And Privacy

Darla Dernovsek, Credit Union Magazine
May 19, 2005

The advent of e-commerce and online financial services has made protecting information much more complicated. Once your credit union starts doing business online, it must anticipate unknown and unseen threats, plug holes that have yet to be created, and be prepared to expand internal systems to provide secure access to devices that are still being invented.

Purdue University’s Center for Education and Research in Information Assurance and Security identified ten trends that will have a significant impact on online security and privacy. Your credit union’s future security challenges likely will be influenced by these trends, reported in “Online Security and Privacy Update,” a CUNA Technology Council white paper.

1. The EverNet. An ever-expanding number of devices always are turned on and connected. Potential points of access to internal systems are growing in number and type. For credit unions, this means members will demand access to a wide range of “anytime, anywhere” financial services.

2. Virtual business. Trust is extended to an ever-expanding group through outsourcing. This is a special issue of concern to credit unions because they often rely on outsourcing to provide services that are too costly to develop or staff in-house. Just as the credit union strives to make these services transparent to members, the third-party provider often relies on connections that are transparent to the credit union. Therefore, the credit union may be placing its trust not only in its vendors but also in the vendors’ vendors.

3. Rules of the game. Government regulations will increase as lawmakers react to losses due to security violations. Federal and state legislators will continue to scrutinize security and privacy issues, particularly in financial services.

4. Wild, Wild West. Criminals can exploit a lack of cooperation and compatibility in international laws. For credit unions, this means the main threat no longer is the lawbreaker who lives down the street or the criminal passing through town. Cyber crooks across the globe can target the credit union as a long-distance victim.

5. No more secrets. Even as privacy concerns grow, people will continue to surrender their privacy for convenience. Be prepared to explain how your credit union protects members—and what protections may be surrendered when members use new technology to access the credit union.

6. Haste makes waste. The need to bring products to market quickly will continue to affect software’s security and quality. Like other software and hardware buyers, credit unions must weigh carefully whether emerging services adequately protect members and the credit union.

7. Talent wars. The lack of security skills compound weaknesses. This can be particularly worrisome for credit unions facing tight budget constraints.

8. Yours, mine, and ours. The ownership of intellectual property and information will be an continuous issue. Credit unions now access a wide variety of information over the Internet free of charge or at a minimal cost. In the future, debates about what constitutes proprietary information may restrict this access. Plus, credit unions may wish to protect their brand or logo from being altered or used without permission.

9. Web of trust. Consumers’ trust will grow as security architecture is standardized. As a result, e-commerce will grow rapidly. Be prepared for the rapid growth that will occur when concerns about security and privacy wane—and be prepared to combat the complacency about security that inevitably will follow.

10. Information pollution. Hacking may be replaced by information exploitation. Gullibility and a misplaced belief in the validity of the printed word—on screen or on paper—creates an atmosphere where information easily can be used to mislead or deceive consumers. Educate employees and consumers about the need to validate and verify information received electronically, and protect the integrity of information the credit union sends electronically.

Darla Dernovsek is a freelance writer based in Clinton, Wisconsin. This story first appeared in Credit Union Magazine at www.creditunionmagazine.com and is reprinted with permission.