5 Emerging Risks of the Convenience Economy—and How to Mitigate Them
Consumer demand for convenience is driving rapid advances in technology, which both your members and employees use to manage their busy lives. The downside to today’s convenience economy is greater risk. Here are five emerging risks you should have on your radar, and steps to take to mitigate them.
1. SMISHing and Website Spoofing
As mobile use grows, members don’t think twice when receiving texts claiming to be from their credit union. These fraudulent texts can install malware or redirect members to fake websites that allow fraudsters to capture or confirm personal or account information.
2. Internet of Things (IoT)
By providing constant connectivity, workplace devices like printers and break room appliances, and employee devices like watches and fitness trackers, are susceptible to hacking, which can lead to unauthorized access to your network
3. Bitcoin and Blockchain
Members may already use bitcoin and blockchain for fast and unregulated transactions, sometimes related to nefarious activity. Unfortunately, about a third of bitcoin trading platforms are hacked.
Phishing attacks can restrict access to files and threaten disruption or permanent destruction of sensitive information unless a ransom is paid, possibly up to thousands of dollars, and usually payable in bitcoin.
5. Social Media
As use grows, so does the reputational threat from inaccurate staff comments, or those appearing incomplete or disparaging. Be wary when taking disciplinary action; the National Labor Relations Board can classify social media activity as “protected concerted activity.”
Mitigating Evolving Risks While Delivering Convenience
Educate Staff and Members
Ensure they understand how to identify spam, shams and other fraud. Teach them what to click, what not to click and how to use proper technology etiquette to keep themselves, and your credit union, safe.
Stay in the Loop
As you consider new high tech products and services to deliver a more convenient customer experience, risk management involvement is even more critical to ensure you’re not blindsided by a problem.
Follow a Process
Risk mapping matrices, risk heat maps and process mapping can help uncover potential risks, quantify their potential impact and keep leadership aware. select appropriate image and place here
Implement Best Practices
You need to be concerned about not only emerging risks but also the ever-changing compliance landscape. Keeping your policies and procedures up-to-date can help you reduce potential loss.
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