Potential Data Breach at NCUA-Run CU

DENVER – NCUA said yesterday it is notifying members of New Horizons Community CU, a financially ailing $300 million credit union it took over a year ago, of a potential data breach of their personal financial information. The data was on a laptop computer that was stolen from a consultant doing due diligence for Bellco CU, another Denver credit union reviewing whether to acquire the troubled institution. The information contained loan records for about 9,000 of the credit union’s 19,500 members. John McKechnie, spokesman for NCUA, said there is no indication the laptop was stolen because of the members’ information or that the thief knew what was on it. “The information is encrypted with several layers of security,” McKechnie told The Credit Union Journal. NCUA is taking the unusual step of making the theft public because of the ongoing concern about data security and identity theft, he added. New Horizons was taken over partly because of its exposure to sub-prime auto loans, the credit union was one of the biggest customers of subprime auto lender CENTRIX Financial. The credit union ended last year with a $20.1 million loss, 3.3% capital and a negative return-on-average assets of 8.6%.