Hot-Button Issues of the Week
Published December 19, 2014 9:41 AM
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Updated June 1, 2021 1:19 PM
1 Min Read
Here's what your colleagues had to say on some of the hottest topics this week.
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NCUA Examiner Causes Data Breach At Small CU
A small credit union in Palm Springs, Calif., is claiming it was the victim of a data breach after an NCUA examiner lost a flash drive filled with member information. Click through the slides to see what readers had to say about it.
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NCUA Examiner Causes Data Breach At Small CU
If the credit union lost data on a thumb drive, what would NCUA's reaction be? Would they say, "well, it didn't contain passwords, so no big deal"? I would suggest that they would first question why the use of thumbdrives was necessary, they are generally considered best avoided for security purposes. Then they would ask if there were a procedure for the use of thumb drives and a risk assessment on the use of thumb drives and portable storage devices. They would insist upon a complete review and a response as to what procedures would be changed to prevent reoccurrence. If NCUA wants to start regaining some of the credibility it lost after the corporate failures, it needs to hold itself to the same standards it holds credit unions.
Posted by bu2008 | Tuesday, December 16 2014 at 10:51AM ET
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Questions Abound Following Data Breach Caused By NCUA Examiner's Error
Credit union experts and the NCUA itself discuss how the loss of a CU's member data, caused by an agency examiner, happened, how it could have been prevented and steps to take to keep it from happening again. Click through the slides to see what readers had to say about it.
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Questions Abound Following Data Breach Caused By NCUA Examiner's Error
Wow Mr. Bacino. Mistakes happen eh? Easy to dismiss with a flip comment when the rebuilding of the reputation falls upon that credit union and its staff. I would think as a regulator telling who is continuously telling credit unions how to run their shops that NCUA would be better prepared to handle a situation like this. Was a risk assessment done?
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Questions Abound Following Data Breach Caused By NCUA Examiner's Error
I know for a fact that a policy statement isn't enough to pass NCUA muster, or common sense. Their policy should state that encryption is REQUIRED, not recommended. The Target breach is an "isolated incident" also.
Posted by John M | Thursday, December 18 2014 at 3:02PM ET
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Questions Abound Following Data Breach Caused By NCUA Examiner's Error
Having worked in this industry for 20 years and having worked with many examiners, I don't recall ever being asked to provide PTT to an examiner. And as other have stated, all information provided to the examiners is ENCRYPTED.
Posted by ELIZABETH D | Thursday, December 18 2014 at 3:16PM ET
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CEFCU To Distribute $40 Million Extraordinary Dividend
It's that most wonderful time of the year when many credit unions traditionally issue special bonus dividends and rebates to members.
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CEFCU To Distribute $40 Million Extraordinary Dividend
Congratulations to CEFCU.
I have never been a proponent of dividend bonuses. They raise the question why not lower everyday prices so that the member gets an immediate benefit. Bonuses are by their very nature excess profits. I am always amazed by how much credit is given for taking member's money and giving it back to them.
Posted by henryw | Monday, December 15 2014 at 11:21AM ET
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CEFCU To Distribute $40 Million Extraordinary Dividend
I agree with you henryw. CU's members would be much better served lowering everyday rates and/or fees.
Posted by jwhite | Tuesday, December 16 2014 at 9:40AM ET
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CEFCU To Distribute $40 Million Extraordinary Dividend
The value of bonus dividends vs. simply raising deposit rates all year is multi-faceted. A bonus dividend is a one-time shot in the arm that doesn't trigger demand. If you simply raise deposit rates, you can create excess demand for deposits, dilute net worth, etc.
Also, human nature being what it is, members "feel" a bonus dividend and can attribute it to the value of their membership. Simply offering better rates all year can get lost in terms of perception.
Finally, the bonus dividend afford operational flexibility since it can be withheld (until it's paid, obviously) if a crisis develops or some other unexpected capital need emerges.
My CU doesn't pay them (yet), but I certainly see the value in this method of returning member profits. I think you can have excellent perennial pricing and still adopt an annual bonus for members.
Posted by tony_h | Wednesday, December 17 2014 at 12:40PM ET
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