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Businesses may be increasingly aware of identity theft threats to their customers, but an Experian survey shows that many consumers still seriously underestimate their risk of falling victim to identity thieves. In fact, the persistent and harmful myth that the majority of consumers are not vulnerable to identity theft is badly in need of debunking. Consumer misconceptions The online Experian survey of 1,000 Americans, age 18 and older, found many consumers have a false sense of security about identity theft, even those who regularly engage in behaviors that can dramatically elevate their risk of having their identities stolen. For example: Sixty-two percent of consumers said the security of their personal information online is a minor concern that doesn’t worry them much, and 17 percent never worry about it at all. The top reason for their lack of concern? Twenty-seven percent said it was because they didn’t share that much personal identifiable information (PII) online. Yet consumers store an average of 3.4 types of PII online, and have a large digital footprint that can make it easy for cybercrooks to track and steal their information. Half believe poor credit means identity thieves won’t be interested in stealing their PII. Twelve percent believe they’re safe because they take security precautions, and 9 percent think using only secure websites insulates them from identity theft risks. Risky behaviors When identity theft occurs, consumers are likely to blame any business they associate with the theft. A Gemalto survey found that consumers said protecting their data is 70 percent the responsibility of the companies they do business with, and just 30 percent their own responsibility, Infosecurity Magazine reports. What’s more, 29 percent said they don’t think businesses take their responsibilities seriously enough when it comes to protecting consumer data. Yet the survey found consumers are probably far more responsible for identity theft than they think because they continue to engage in behaviors that put them at greater risk. These include: Shopping online over a public Wi-Fi connection (43 percent) Allowing others to use online account names and passwords (33 percent) Letting others know their mobile device passwords (29 percent) Sharing payment card numbers and/or PINs (25 percent) Letting others use their PII to secure a job or credit (20 percent) Failing to enroll in credit monitoring or identity theft protection services (82 percent) Leaving it up to their banks and credit card companies to catch signs of fraud (81 percent) These dangerous habits can expose consumers’ PII to cybercriminals, even though half of those we surveyed didn’t think they were likely to become victims of identity theft. Impact of identity theft When consumers become identity theft victims, they experience a range of negative emotions and real consequences that affect them personally and financially. According to a survey by the Identity Theft Resource Center, identity theft victims reported feeling frustrated, fearful, angry and stressed. Many had trouble concentrating, lost sleep and felt physically ill because of the crime. They also reported the identity theft overshadowed their personal relationships, their personal and professional credibility, and even affected their ability to get jobs. Some even lost their jobs as a result. What companies can do Clearly, identity theft can be devastating and consumers need to do more to protect themselves. When it occurs, identity theft also undermines the consumer’s trust in companies and institutions, especially if the identity theft occurred in connection to or following a data breach. Helping consumers protect themselves from identity theft benefits everyone. Consumers can avoid the financial and emotional turmoil identity theft causes, and companies can help preserve their relationship with customers. As part of an effective data breach response plan, companies should include a consumer care element that provides breached consumers with: Free identity theft protection and credit monitoring services Dark web and internet records scanning Fraud resolution services Identity theft insurance Myth debunked Year after year, identity theft statistics demonstrate that most consumers are at risk of falling prey to identity thieves, no matter what they believe to the contrary. Unfortunately, consumers continue to take actions that can place their identities at risk. While you can’t force your customers to stop accessing their bank accounts over airport Wi-Fi or using the same password for all their financial accounts, you can take steps to reduce the risk they’ll experience identity theft because of something your organization did or didn’t do. Helping consumers protect themselves from identity theft makes good business sense, and it’s the right thing to do. Plus, consumers expect it; according to the Ponemon Institute’s “Mega Data Breach: Consumer Sentiment” survey, 63 percent of consumers believe a company that experiences a data breach should offer free identity protection to customers affected by the breach. Learn more about our Data Breach solutions

  National Hispanic Heritage Month is observed each year from Sept. 15 to Oct. 15, by celebrating the histories, cultures and contributions of American citizens whose ancestors came from Spain, Mexico, the Caribbean and Central and South America. With one in six U.S. residents being Hispanic, all communities are impacted by the contributions of Hispanics—and now is a great time for financial institutions to reflect upon their largest growth opportunity. What is the best way to reach Hispanic consumers? What are the nuances of the Hispanic market? What are some of the myths FIs have about the Hispanic community? Miriam De Dios Woodward, CEO of Coopera, a Hispanic market strategy firm that helps credit unions reach and serve the Hispanic consumer segment, recently chatted with Experian about serving the Hispanic market. Here she shares her thoughts: Are there special considerations or insights credit unions should know when serving the Hispanic market? It’s very important to understand the Hispanic market is nuanced. There are 22 Spanish-speaking Latin American countries from which prospective Hispanic credit union members may hail. Add to that the fact, many U.S.-born Hispanics think, speak and behave differently than their parents and grandparents. Layer over this the existence of segments like small business owners or Millennials and you can begin to see the complexities involved with targeting and serving a multi-faceted Hispanic market. A smart Hispanic membership growth strategy will be based on segmentation, so credit unions should be willing to invest upfront in good market research. You have to understand what your local Hispanic community really looks like before you can mobilize your teams and leadership around serving them well. Are there particular consumer trends you have seen in the Hispanic community that impact the financial services space? The increasing digitization of financial services is a trend that definitely impacts Hispanic consumers. That’s because Hispanics typically over-index in studies that look at consumer use of connected devices, online banking and social media. A good Hispanic membership growth strategy will take mobile and digital products and services into account and will be tailored to the specific needs of local Hispanic communities. People often assume the Hispanic market is largely centered in states like California, Arizona, Texas and New Mexico. Are you finding that credit unions outside of these southwestern states are discovering they too need to build out a strategy in partnering with this consumer base? Absolutely. Hispanic population growth is happening far beyond so-called “gateway states” like those you mention above. In fact, states such as North Dakota, Kentucky, Louisiana, Delaware and Maryland actually saw the largest Hispanic population growth between 2007 and 2014. Midwestern states, too, are discovering just as many opportunities for engagement with their own growing numbers of Hispanic residents. Iowa and Wisconsin, for instance, each experienced explosive growth rates and now count Hispanics among one of the largest, fastest-growing and youngest groups in their cities. With a comprehensive and strategic approach to Hispanic membership growth, credit unions in unexpected places can become the preferred financial institution for this important segment. That’s because a great number of Hispanics in the U.S. are not tethered to an existing financial relationship. For more on this, check out our recent white paper Hispanic Member Growth Not Just for 'Gateway States' Anymore. What are the biggest myths financial services companies have about the Hispanic community? While there continue to be many misconceptions about the multifaceted Hispanic community, the following three continue to prevail most heavily. Myth: Hispanic consumers are only interested in transaction-based products. Check cashing and remittances are necessary services for many first generation Hispanic segments. At the same time, many of these consumers are interested in long-term relationships. Our own research indicates product penetration increases at a faster rate among Hispanic members as compared to non-Hispanic members when credit unions execute a strategic plan. Myth: The majority of Hispanics are undocumented. This misperception has been somewhat renewed this year with all the political back and forth on the subject of immigration. That’s why it’s so important for credit unions to educate – from the inside out – stakeholders on the facts. Many people do not know, for instance, that of the country's more than 52 million Hispanics, most are native-born Americans, and nearly three in four are U.S. citizens. Myth: The law prevents us from serving immigrants. There are many forms of acceptable government issued identification, such as passports and consular cards that are in full compliance with the Patriot Act and Customer Identification Program rules. In addition, financial institutions can compliantly lend to individuals who have Individual Taxpayer Identification Numbers. In fact, the NCUA wants credit unions to serve Hispanic members, including Hispanic immigrants. For more on this, check out the recording of the NCUA hosted panel, “Unique Challenges and Opportunities Serving Hispanic Credit Union Members.” For a credit union seeking to build a relationship with this community, what are your recommendations? Are there particular products or touchpoints they should focus on? Solidifying the right organizational mentality first is an important best practice. Building buy-in, doing the market research, developing a comprehensive strategy based on segmentation and defining what success truly looks like – these are all a part of laying the foundation for success with the Hispanic market. Credit unions should also be smart about talking to and partnering with local organizations that already know – and are trusted by – Hispanic residents. Conducting focus groups with the leaders of these groups and the people they serve can give credit unions a wealth of information about the makeup of their local Hispanic community and the value they might bring to the community.  

Cybersecurity cannot be successful if siloed. The entire organization must be part of the effort. Take these steps to ensure a more engaged relationship between cybersecurity teams, C-suite executives and other departments: Make the company’s chief information officer accountable directly to the chief executive officer and/or the board. Train employees at every level to spot security risks and to understand their role in protecting the entire organization from cyberattacks. Put cybersecurity on the agenda for every board and executive-level meeting, and incorporate it into quarterly state-of-the-company, all-hands meetings. With cybersecurity threats evolving and escalating daily, companies need to make engagement a priority that starts at the top and continues through every level of the organization. Increasing engagement in cybersecurity >