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News Now

CU System
More media outlets spotlight CUs, CUNA's breach survey
MADISON, Wis. (1/24/14)--Results of the Credit Union National Association's survey on costs related to the Target data breach continue to make headlines in national media outlets.
 
Thursday's San Francisco Business Times and Las Vegas Review-Journal picked up the story for their regions with localized numbers provided by the California and Nevada Credit Union Leagues.
 
In fact, league President/CEO Diana Dykstra called the breach's impact "astonishing" in Thursday's San Francisco Business Times. "This reinforces the need for national legislation. As it stands now, financial institutions are left holding the bag every time a retailer leaves itself open to a security breach," she said. (See related story: "CUs' state-by-state breach data can inform advocacy efforts.")
 
According to CUNA's survey results, credit unions have incurred costs in the range of $25 million to $30 million as a result of the breach. The Target breach has cost credit unions about $5.10 per card affected by the security lapse, on average.
 
The Minneapolis/St. Paul Business Journal and the trade publication Chain Store Age both ran CUNA's survey results.

MSN Money picked up Wednesday's Associated Press story which zeroed in on CUNA President/CEO Bill Cheney's comments that retailers such are Target Corp. are "rarely held responsible for reimbursing financial institutions for the costs that the data."
 
On Thursday, Bankrate.com writer David McMillin noted that the "scary part" is that the preliminary survey results don't include anticipated losses from fraudulent activity.

Yahoo Finance ran with 24/7 Wall St.'s "Cost of Target Data Theft Spreads, Credit Unions Now... Banks Next?"
 
In Compliance Week, CUNA Senior Vice President for Compliance Kathy Thompson said, "There are no regulatory requirements about notifying members when a breach occurs in a merchant's information system" (Jan. 22). She emphasized that CUNA has been advocating for congressional action on legislation to require merchants to reimburse financial institutions for costs incurred when breaches occur in retailers' systems.
 
Computerworld captured the back-and-forth rallying between retailers and financial institutions over payments systems security and who should cover the costs of data breaches (Jan. 23).
 
KRNV 4 in Reno, Nev., reported that the breach has cost Greater Nevada CU, Carson City, more than $15,000, and Target will not be reimbursing any of its expenses.
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