June 26, 2014 – A study from ATM network PULSE shows the impact on credit unions of retailer data breaches, particularly the huge Target Corporation breach, as NAFCU continues to press the case for action on national data security standards for retailers.The study shows that in 2012, 3 percent of credit union cards were affected by fraud; this number rose to 16 percent in 2013, with 14 percent resulting from the Target breach. By comparison, the number of cards affected at large banks rose from 7 percent to 14 percent that year, with 10 percent resulting from Target. At small banks, the number of cards affected rose from 5 percent to 12 percent, with 9 percent resulting from Target.The study also found that credit unions suffered larger losses than others: credit unions had a loss of 7.2 basis points on signature debit transactions, and 0.2 points on PIN authenticated transactions, compared to the debit issuing industry overall losing 5.7 and 0.7 basis points respectively. Last week, NAFCU President and CEO Dan Berger wrote an editorial in the Huffington Post highlighting the effects of data breaches on consumers. Berger pointed to the numerous retailer data breaches that have occurred in the six months since the Target breach, and he reiterated the association’s call for national data security and breach notification standards for retailers.
NAFCU was the first financial trade association to call for a national
data security standard for retailers in the wake of the Target breach
and continues to push for action on Capitol Hill.