Press Releases

CUNA Mutual Group Teams with Kroll on Cyber Incident Package

MADISON, Wis., NEW YORK - September 30, 2010

CUNA Mutual Group, Kroll Collaborate on Cyber & Security Incident Package

Insurance Coverages and Recovery Services Help Credit Unions Prepare for and Minimize Data Breaches

CUNA Mutual Group, the leading provider of insurance and financial services for credit unions, and Kroll, one of the world’s leading risk consulting companies, are teaming to offer credit unions and related organizations the new Cyber & Security Incident (CSI) Package.

Available Oct. 1, the CSI Package pairs a broad insurance policy with two levels of critical data breach services to protect credit unions and their members in the event of an internal data breach that compromises sensitive member data.

“The evolution of the cyber world and virtual servicing are creating an emerging set of new risk exposures for credit unions,” said Chuck Cashman, director in CUNA Mutual Credit Union Protection Product Management.  Stolen laptops, employee sabotage, network hackers, lost data disks and negligent data disposal are some of the potentially catastrophic risks credit unions face.

“These risks are linked to security incidents or direct breaches of credit union data, unlike the highly publicized third-party data breaches at retailers or merchant processors,” Cashman said. “An internal data breach can result in more than lost data. It can damage a credit union’s reputation, shake members’ trust, and cost tens of thousands of dollars to repair.”

According to the Identity Theft Resource Center, 42 data breaches involving financial institutions have occurred in 2010, well on the way to surpassing the 62 incidents in 2009. Additionally, the 2008 CUNA Technology & Spending Report stated more than 40 percent of credit unions experienced at least one incident of ID theft in 2008.

The CSI Package has two available policies that address losses not typically covered by traditional insurance policies. The CSI Basic Policy and the CSI Advantage Policy both contain liability and expense insurance components manufactured and underwritten by CUMIS Insurance Society, Inc., a member of the CUNA Mutual Group. Credit unions can select the entry-level Basic Policy or the robust Advantage Policy, which contains additional coverages, Cashman said.

The following coverages are included within the CSI Basic Policy and CSI Advantage Policy:

• Security Breach Liability
• Programming Errors and Omissions Liability*
• Public Relations Expense*
• Security Breach Expense*
• CUMIS Advantage Endorsement*
• *CSI Advantage Policy only

The following optional coverages are available with either CSI Policy:

• Web Site Publishing Liability
• Replacement or Restoration of Electronic Data
• Extortion Threats
• Business Income and Extra Expense

Flexible coverages, limits and deductibles are available.

“We used customer feedback from 75 credit unions to design a simple, flexible package that offers two different policies, with security breach liability coverage being the keystone for both. We complemented the insurance protection with the comprehensive data breach services provided through a preferred pricing arrangement with Kroll, a highly respected data breach services organization with more than 30 years of experience in security and risk mitigation,” Cashman added.

CSI policyowners can access Kroll services to prepare for and respond quickly to a data breach. Included with CSI Package enrollment is Kroll’s online Incident Preparedness resources, which help credit unions benchmark data security levels, identify weak spots and heighten breach exposure awareness levels. These Kroll services are provided with CSI policy acceptance.

Kroll also offers the Incident Response & Recovery Service that rapidly triggers a defensible investigation of data loss and methods to communicate required details and desired safeguards to affected members.

Kroll’s experts will work in tandem with the credit union to launch and implement best practices including:

• Intentional attack investigation/pursuit and recovery of data
• Evidence collection and incident evaluation
• Identification of the impacted audience
• Incident containment guidance
• State-specific breach notification legislation expertise
• Contact information update and standardization for improved notification results
• PR expertise to deliver a controlled, consistent message

If member data has been compromised, the Kroll Member ID Consultation & Restoration Services is also available to deliver consistent information to impacted members about their credit union’s data loss, along with personal access to Licensed Investigators who are prepared to deliver expert answers and full-service restoration for members who experience identity theft due to the incident.

No payment is required for Incident Response & Recovery or Member ID Consultation & Restoration services unless a breach occurs.

“A data breach costs more than money. It can damage a credit union’s reputation and brand, which can shatter member trust and weaken operational efficiency,” said Brian Lapidus, chief operating officer of Kroll’s Fraud Solutions. “The CSI Package protects a credit union’s bottom line by providing precision tools and industry experts to assess risks and develop appropriate responses. The comprehensive response to an incident further protects reputation and members’ personal data. It’s a stellar combination.”

For more information on the Cyber & Security Incident Package, contact a CUNA Mutual Sales Executive at 1.800.356.2644 or email cuprotection@cunamutual.com.

About CUNA Mutual Group

CUNA Mutual Group is a leading provider of financial services to credit unions, their members and valued customers worldwide.  Celebrating 75 years of commitment to credit unions, CUNA Mutual's vision is unwavering:  to be a trusted partner who delivers service excellence and customer-focused, best-in-class products and market-driven innovation.  More information on the company is available on the company’s Web site at http://www.cunamutual.com.CUNA Mutual Group is the marketing name of CUNA Mutual Insurance Society, its affiliates and subsidiaries, including CUMIS Insurance Society, Inc.  Product availability and features may vary by jurisdiction and are subject to actual policy language. Corporate headquarters are located in Madison, Wisconsin. 

About Kroll Inc.

Kroll, the world’s leading risk consulting company, provides a broad range of investigative, intelligence, financial, security, and technology services to help clients reduce risks, solve problems, and capitalize on opportunities. Headquartered in New York with offices in more than 55 cities in over 27 countries, Kroll has a multidisciplinary team of more than 3,000 employees and serves a global clientele of law firms, financial institutions, corporations, non-profit institutions, government agencies, and individuals. Kroll is an Altegrity company.