Removing Barriers Blog

CUNA and Trades Urge Committee for Strong Data Breach Legislation
Posted December 21, 2017 by CUNA Advocacy

Earlier this week, CUNA and other financial trade association joined together to highlight what data breach legislation should look like to leadership of the House Energy and Commerce Committee in response to the Committee’s request for comments on such legislation.

The letter stated,

“Stopping breaches is critical for consumers, and also important to our members who often have the closest relationships with those affected. Data breaches impose significant costs on financial institutions of all sizes because our first priority is to protect consumers and ensure that they have no liability for fraud that typically follows a breach. Our members provide relief to victims of breaches, regardless of where the breach occurs.”

CUNA has long supported strong national data security and data breach notification standards and requirements. Any legislation passed should:

1. Ensure that all entities are required to protect sensitive personal and financial data;

2. In the event of a breach, require timely notification of consumers and impacted parties that are at risk; and

3. Ensure compliance via appropriate Federal and State oversight, recognizing existing federal obligations for the financial industry to both secure data and notify consumers of a breach, and eliminate overlapping and inconsistent laws and regulations.

Any legislation enacted into law must ensure that all entities that handle consumers’ sensitive financial data have in place a robust – yet flexible and scalable – process to protect data, which must be coupled with effective oversight and enforcement procedures to ensure accountability and compliance.

CUNA will continue to work with Congress and other trade associations to ensure meaningful data protection standards are enacted into law.