Report: CUs, banks outdo retailers on data security
Jan. 27, 2014 – A report from Javelin Strategy & Research provides support for NAFCU and others seeking legislation requiring national standards for merchants’ data security.
In its ninth annual credit card issuers’ study, Javelin scored 24 of the nation’s top credit card issuers and found banks and credit unions ahead of retailers and merchants in protecting consumers’ credit card data. Among those largest institutions reviewed were Navy FCU and Pentagon FCU.
The report says card fraud affected 7.5 million Americans in 2012 and generated total fraud losses of nearly $8 billion.
“Retailers, common targets for data breach crimes, scored lowest in Prevention [a Javelin measurement] and among the lowest overall. The three retailer issuers reviewed placed lowest in Prevention — Cabela's WFB (29%), Target (22%), and Nordstrom (18%) — indicating inattention to factors that could help to lower these issuers’ overall incidence of card-associated fraud,” Javelin analyst Al Pascual said.
NAFCU is strongly urging Congress to act on legislation that would subject merchants and retailers to national data security standards similar to those already imposed on credit unions and banks under the Gramm-Leach-Bliley Act.
American Banker article