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Wisconsin Community Banker
March/April 2014
Financial Institution
Products & Services
Offered by Your Association
◆
Financial Institution Bond
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Directors and Officers Liability
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Property, Casualty, and Workers’ Compensation
◆
Forced Placed Property Mortgage Protection
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$9.00 Life of loan flood determinations
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Residential and Commercial Evaluation Program
Community Bankers Financial Services offers a wide variety of products and services
for the benefit of you, our members. For additional information on any of our
financial institution programs call Denise Davis at CBFS at 608.345.6998.
Kevin Christians
Denise Davis
2014 Security Workshop
Chad Knutson on Electronic Crimes: Trends and Issues
Doris Green
F
orget Stephen King thrillers and
never mind roller coaster rides.
If you really want to make your hair
stand on end, plan to attend CBW’s
2015 Security Officers Workshop next
spring. The 2014 workshop proved an
eye-opener for new community bank
security officers, in addition to provid-
ing valuable reminders and updates to
seasoned officers.
More than 100 participants attended
the workshop at the Wisconsin Dells
location, the third and final presenta-
tion held across Wisconsin in March.
The maximum capacity crowd learned
many basic facts—for example, there
were 116 bank robberies in the state
last year and the robbers are getting
younger, perhaps partly due to increas-
ing heroin use across the nation.
Yet the most frightening facts
related to technology and cyber
crime. “Cell phone and mobile bank-
ing exposes us more than ever,” said
Rick McGuigan, CBW executive vice
president. Mobile banking automati-
cally carries a medium-level risk at a
minimum. “Technology is doubling
every 18 months, and this change is
accelerating.”
How to keep up?
Chad Knutson, Secure Banking
Solutions (SBS) senior information
security consultant, recommends “a
layered approach.” Taken individually,
most security controls can be hacked,
but putting multiple controls in place
is “overall, a good prevention model.”
In addition to passwords, PINs, and
other technical controls, educating
consumers belongs in any bank’s secu-
rity toolkit.
Employee education is also crucial,
McGuigan said. “Frontline employees
are your best defense, even with wire
transfers and ACH.”
In fact, “you can’t train staff
enough,” Knutson said. “There are
always vulnerabilities and new risks.”
He advised supervisors to prohibit
employees from browsing the Web
or conducting any personal activi-
ties online while at the bank. “There’s
always a risk.”
When employees bring their own
device (BYOD) to work with bank
data in the office, Knutson urged the
bankers to inventory all personal
devices and develop policies for their
use in the bank. While BYOD enables
employees to use social media while
at work and may reduce a bank’s tech-
nology costs, he encouraged the bank-
ers to carefully consider the potential
risks and vulnerabilities—from data
breaches to liability, insurance, and
theft.
In considering bank-owned com-
puters, Knutson recommended using
separate computers for e-mail and
wire transfers. Separating the bank’s
computer systems can reduce the risk
of a data breach spreading from one
system to another.
This simple step might have
thwarted the 2013 Target data breach
in which employees at an HVAC firm
were the victims of a malware-laced
