Strengthening Your Defenses: Why Secure Partners Are Critical With third-party risk on the rise, here's how to ensure your vendors are allies, not liabilities Cybersecurity Awareness Month each October is a critical reminder for organizations to evaluate their security posture. For financial institutions, including credit unions, banks, and finance companies, this evaluation must extend beyond your own walls and into the practices of every vendor you work with. In today’s interconnected environment, the security of your business partners is an extension of your own. Choosing a partner with a robust, proactive security posture isn't just a matter of compliance; it's a fundamental part of protecting your institution and those you serve. The Stakes Have Never Been Higher The threat landscape continues to evolve, and recent data shows that third-party risk is a primary driver of costly breaches — and the financial industry remains a prime target. Consider these findings: Third-party risk is a direct cause of breaches. A 2024 report found that at least 35.5% of all data breaches originated from compromises at a third-party vendor. (SecurityScorecard) Costs for financial institutions remain high. The average cost of a data breach for the financial industry is $6.08 million per incident, significantly higher than the global average. (IBM) The human element is a key factor. The "human element," which includes errors, phishing, and social engineering, plays a role in 60% of all breaches. (Verizon) Stolen credentials are a primary entry point. The use of stolen or compromised credentials was a factor in nearly one-third of all breaches, underscoring the need for strong authentication. (Verizon via Abnormal) What to Look for in a Secure Partner A partner’s commitment to security should be proactive, not reactive. Lenders must look for organizations that employ impeccable controls and can demonstrate their strength in this area. Proactive Due Diligence: Does a potential partner voluntarily offer a due diligence packet because they are confident in their security? Or do you have to ask multiple times? A proactive partner is a secure partner. Advanced, Demonstrable Safeguards: Look for partners who can show you their security in action. A key feature to look for is multifactor authentication (MFA), especially on platforms where your members or customers interact. MFA provides an essential extra layer of defense beyond a simple password, ensuring that sensitive data remains protected. “Security threats don’t stop when the whistle blows at 5 p.m. and hackers don’t take vacations,” says Michael Weiskircher, State National’s CIO, “so protecting against attacks has to be an ongoing, real-time process of fixing vulnerabilities immediately.” Security in Action at State National At State National, we believe that protecting our clients' data is a foundational part of the service we provide. We are on a mission to not only meet but exceed all security standards. MFA on Borrower Platforms: We practice what we preach. Our MyLoanInsurance.com borrower portal is protected with two-factor multifactor authentication (MFA). This safeguard helps ensure that borrower data is protected from unauthorized access. Constant Vigilance: We know that security is a 24/7/365 commitment. As Michael Weiskircher, State National’s CIO, says, “Security threats don’t stop when the whistle blows at 5 p.m. and hackers don’t take vacations, so protecting against attacks has to be an ongoing, real-time process of fixing vulnerabilities immediately.” A Dedicated Compliance Department: A partner with a proactive, in-house compliance team demonstrates a deeper commitment to security. This team ensures the company rigorously adheres to all state and federal data protection laws, providing a critical layer of assurance that security policies are consistently followed and enforced. The Markel Advantage: As part of the Markel family of companies, State National has access to the security tools, resources, and expertise of a multi-billion dollar, multinational insurance holding company. This adds yet another layer of enterprise-level protection. Choosing an Ally, Not a Risk Vetting a business partner's security is a critical fiduciary responsibility, and choosing the right one allows you to focus on serving your members. You can rest easy knowing that when it comes to your portfolio protection program, State National has you covered. Do Your Part. #BeCyberSmart

Filene Research Institute outlines 6 payment trends reshaping how members interact with money — and how credit unions can stay ahead in a digital-first world