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CU System
Target card breach cost Minn. CUs estimated $750,000
ST. PAUL, Minn. (2/21/14)--An estimated $750,000 in costs have been incurred by Minnesota credit unions because of the Target data security breach, according to the Minnesota Credit Union Network (McCUN).
 
The state's numbers--broken down from the Credit Union National Association's national survey--include 27,000 credit and 117,000 debit cards that were compromised with a cost per card of $5.15.
 
Target is headquartered in Minneapolis.
 
"Credit unions and their members throughout Minnesota have been impacted by the data breach and they are having to cover those costs by themselves," said MnCUN President/CEO Mark Cummins. "Credit unions have incurred all of the costs related to reissuing cards, monitoring accounts for fraud, notifying members and closing and reopening accounts."
 
CUNA's numbers primarily are related to reissuing cards and other administrative expenses, which have cost credit unions nationally an estimated $30.6 million. Fraudulent activity--past or future--is not included in the survey results.
 
"Protecting members' financial and personal information is critical for credit unions--not just because it is required by regulations, but also because credit unions value the trust their members place in them," Cummins said.
 
He urged Congress to consider "legislation that holds all participants in the payments system to comparable security standards, allows for informing consumers about where their data was compromised, and requires merchants to reimburse credit unions for the costs of reissuing cards."
 
CUNA also has urged lawmakers to take a broad look at how consumer data is secured and the improvements that are necessary to prevent future breaches.
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