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April 16, 2013 - Data security continued to be a significant cost of doing business in 2012 for credit unions, according to survey results for the April issue of NAFCU's Economic & CU Monitor, released Monday.

On average, 3,800 member accounts were affected by data breaches last year; it cost credit unions, on average, $86,000 to pay for the clean-up. Credit unions also spent an average of $112,000 on data security measures in 2012.

Asked whether they expect data security costs to rise or fall this year, 38.5 percent said they expect those costs to rise; just 2.6 percent expect to spend less.

The survey also showed that, in 2012:

• The average cost to reissue a card was $5.60.
• 81.4 percent of respondents said they provide data security training to employees.
• Respondents spent an average of 2,100 staff hours dealing with credit and debit fraud issues.

NAFCU, as part of its five-point plan for regulatory relief, is pressing Congress for action on a set of national data security standards that would, among other things, make merchants accountable for data breaches on their end.

In recognition of April as National Financial Literacy Month, credit unions were also asked about their financial literacy efforts. According to survey findings:

• 80 percent of respondents offer financial literacy training to members.
• 3,400 members per credit union, on average, used the programs in 2012.

Many credit unions tailor their efforts according to target group. Of the survey respondents, 78.8 percent said they offer training to students; 57.9 percent offer training to the elderly; and 68.4 percent have programs for high-risk borrowers. The most common type of educational program offered focused on home buying.