October is Cyber Security Awareness Month in Canada. For Central 1, cyber security is something we think about and work on all year round, but since it’s such a special month, we wanted to share more about how one of our major security measures not only safeguard our clients and members, but their clients and members too!

The success of 2-Step verification

Two-Step Verification (2SV), also known as multi-factor authentication, is a critical feature in the fight against banking fraud. It can be triggered both at the time of login and when performing risky transactions. Through this feature, customers are sent verification codes via SMS, email, or voice call, which provides an additional layer of security.

This ‘step-up’ approach can be activated during high-risk activities, such as logging in from a new location or processing large payments. Fraud can be prevented in real time, giving financial institutions more time to focus on the important work of supporting their customers and members.

2SV is an important part of a layered fraud prevention approach. Among more than 130 Central 1 clients who have adopted 2SV, fraud losses have reduced by 50% since June 2022. This remarkable result demonstrates how this single security measure can have such a significant effect on preventing fraud and cybercrime.

When 2SV is implemented to secure high-risk transactions, the losses can be up to 80% lower. It can also save SMS costs by allowing the financial institution to reduce the challenge rate on login. We’re looking forward to incorporating 2SV in more digital banking features in the coming months. We’re looking forward to incorporating 2SV in more online banking features in the coming months.

A multi-layered cyber security approach

2SV is part of Central 1’s multi-layered cyber security approach covering authentication, malicious activity detection, application security, platform security and operational security. By combining advanced technologies, thorough data analysis with proactive education, we not only strengthen digital banking and payments security, but we also promote best practices within the financial industry, facilitating effective monitoring and analysis.

It takes a village — make sure to educate your customers

As many cyber security breaches are caused by human error or negligence, ensuring that customers are aware of the potential risks and how to mitigate them can greatly reduce the likelihood of a breach.

Mandating the use of strong passwords and providing education on how to avoid phishing scams and malware are just a few examples of ways credit unions can better equip customers to protect themselves against cyber threats.

Research indicates that a signification portion of customer base, particularly older demographics, limit their use of digital banking services due to security concerns. Educating customers can increase their confidence in your financial institution’s security measures. further strengthen their trust in your services and business.

To learn more about Central 1’s cyber security approach: Cyber Security – Central 1 Credit Union