Digital illiteracy means we all pay
Susie Erjavec Parker
Elevating brands and driving revenue with expert marketing & communications??Ask me how to dovetail your PR and social media for maximum results??Passionate about customer experience, brand building, and omnichannel??
After an online scam cost 48 member upwards of $3K, credit union initially charged members a $1K deductible. The credit union reversed this decision and after is all is said and done—did anyone learn anything?
The decision to reverse their decision and cover the member losses is a dangerous precedent and shows how a poor communications strategy can cost your business money.??
1. As soon as the credit union was made aware of the scam they should have absolutely told their members about the scam complete with signs of what to look for (including screenshots) and secure ways to login to their accounts.
2. Yes, the credit union would still have had to file an insurance claim but had they been transparent from the beginning fewer members would have fallen prey to the scam. With a crisis communications strategy in place, the credit union could have decided to eat the cost of the claim based on their business strategies and wise decision to be upfront about the scam as sign of a goodwill. At this point, it still would be a good news story. But we all know that’s not what happened. ??
3. Ultimately, the members’ own online (digital) illiteracy was the cause of this scam being so lucrative for the scammers. But members were also failed by the credit union’s inaction. People must become more knowledgeable about online transactions and overall use. That is no business’s fault. We see the effects of this with disinformation being spread and everyday phishing scams.
4. Personal responsibility is absent from this outcome. The members didn’t necessarily learn their lesson and are likely indignant about their role in this scam thanks to the inability of the credit union to protect their brand (online and offline) and their members. Unfortunately, we all end up paying for that in the end and the costs will only continue to grow.
For more information on online fraud and how to protect you, your company, and your family, please visit The Canadian Anti-Fraud Centre.
For more information on how to create a crisis communications plan that can save your company's reputation and money, please message me or email.
#publicrelations #PR #crisiscomms #communications #infosec #onlinesecurity #phishing
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4 年Great perspective Susie. There's always a way to turn an unfortunate incident into a learning experience. The CU should offer a digital literacy course to all those affected to prevent the same thing from happening again.
Lifetime Listener | Digital Transformation Facilitator | Fun Coach!
4 年Great points Susie Erjavec Parker, consumers have an important role to play in protecting themselves. Digital literacy is not mutually exclusive!