Online banking coverage for your members
With the increasing threat of identity theft and online fraud, members need peace of mind that they are protected when conducting their banking online. If the online banking process that members have come to trust is compromised, they want to be assured that any losses are covered.
Despite increasing security, loss prevention programs and publicity surrounding online fraud, web banking continues to see security breaches. CUMIS Insurance has always included coverage for the credit union banking system through The Credit Union Bonding Program (TCUBP). Now, you can add protection for your members to help reimburse any financial loss and provide them with an online banking security guarantee.
The Online Banking Coverage from CUMIS Insurance provides insurance protection to promptly reimburse members who are victimized by online banking fraud.
Phishing and Pharming; it can happen to you
What is Phishing and Pharming? *
Phishing attacks use both social engineering and technical subterfuge to steal consumers' personal identity data and financial account credentials.
Social-engineering schemes use 'spoofed' e-mails to lead consumers to counterfeit websites designed to trick recipients into divulging financial data such as credit card numbers, account usernames, passwords and social security numbers. Hijacking brand names of banks, e-retailers and credit card companies, phishers often convince recipients to respond.
Technical subterfuge schemes plant crimeware onto PCs to steal credentials directly, often using Trojan keylogger spyware. Pharming crimeware misdirects users to fraudulent sites or proxy servers, typically through DNS hijacking or poisoning.
- "Phishing Incidents" aimed at individual credit unions and the credit union system are a common occurance in North America;
- 93.8% of phishing attempts are directed at financial institutions;
- Criminal activity on the Internet is increasingly controlled by organized crime;
- The number of new "banking trojans" designed to steal online banking and other payment information grew 62% in the first half of 2007.
Loss Prevention and Discounts
Strong loss prevention practices will help avoid losses and keep your insurance premiums affordable. In fact, your loss prevention efforts will lead to direct savings on your insurance costs for Online Banking protection.
Loss Prevention Method
Anti-Virus / Anti-Spyware
24/7 Fraud Monitoring
Transaction Limits on Interac® Money Transfer
Other Security - (i.e. Passmark)
Effective loss prevention is the best way to protect your credit union and its members from financial loss. Since these losses cannot be entirely avoided, the Online Banking coverage will respond when loss prevention fails.
To learn more about online fraud schemes and prevention for your members, please visit the following links:
Links to other websites or references to products, services or publications are provided only for your convenience and do not imply the endorsement or approval of such websites, products, services or publications by The CUMIS Group Limited (CUMIS). We cannot vouch for the currency, accuracy, completeness, or authenticity of any site content or functionality, or of any such references. Linking to any other site shall be at your sole risk, and CUMIS will not be responsible or liable for any damages in connection with any such linking.
Frequently Asked Questions
What does the credit union need to do?
In order to add this coverage to your Bond, The Credit Union Bonding Program requires an application for coverage. Credit unions are also required to provide:
- Copy of sample online banking or account agreements
- Contract with online banking system provider
- Details on loss prevention information provided to members
What needs to be in the online banking or account agreement?
Your online banking or account agreement must contain a suitable limitation of liability related to improper disclosure of online banking passwords, including:
- Not disclosing the online banking password to anyone, including a friend, family member, credit union employee or law enforcement agency;
- Avoiding password combinations that can be easily determined by others, such as name, date of birth, SIN or phone number;
- Taking all reasonable precautions when using or signing on to online banking services.
Are all online banking systems eligible for this coverage?
No. All online banking service providers must be approved by the Insurer.
Is the member obligated to use anti-virus software and keep it up to date?
We do not require any specific action by the member. Our focus is on education of the member rather than placing conditions on the coverage. It has been shown that education is an important component of loss prevention, but that there are a number of ways to compromise a member’s online banking information that cannot be prevented by anti-virus software.