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News Now

CU System
Pa. CU second to file suit against Target after breach
PITTSBURGH (2/3/14)--First Choice FCU, New Castle, Pa., is the second credit union to file a lawsuit against the retail giant Target after a security breach late last year compromised the debit, credit and personal information of about 110 million people.  
 
According to the Pittsburgh Tribune-Review, the $38 million-asset credit union filed suit in U.S. District Court in Pittsburgh Friday.
 
In the filing, the credit union said it has had to cancel and reissue 75 cards for members. It also faces the potential losses of reimbursing fraudulent charges on members' accounts, interest and transaction fees, and other expenses for monitoring and preventing fraud.
 
Alabama State Employees CU, Montgomery, was the first credit union to take legal action against Target, filing a class action suit Dec. 30. (See News Now 1/3/14: CU seeks restitution in class action filed against Target).
 
The lawsuit also claims that the Minneapolis-based retailer was negligent in protecting consumer data and violated Minnesota law by retaining magnetic strip information from purchased made by customers with credit and debit cards.
 
The Credit Union National Association has been collecting data from credit unions on the costs and burdens created by the Target data breach. According to CUNA estimates released earlier this month, the total cost of the breach for credit unions is between $25 million and $30 million. However, the actual costs could exceed this estimate in the coming weeks if greater fraud losses are incurred or those that have reported already add additional costs to their reported totals.
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