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FOR IMMEDIATE RELEASE | April 15, 2015

NAFCU Lauds Sens. Carper and Blunt Introduction of Data Security Bill

FOR IMMEDIATE RELEASE

NAFCU Lauds Sens. Carper and Blunt Introduction of Data Security Bill

Washington (April 16, 2015) - National Association of Federal Credit Unions (NAFCU) Vice President of Legislative Affairs Brad Thaler todaylauded the introduction by Sens. Tom Carper, D-Del., and Roy Blunt, R-Mo., ofthe Data Security Act of 2015 (S. 961), a bill that would bring retailers under a national standard similar to the Gramm-Leach-Bliley Act requirements for financial institutions — a measure NAFCU has long sought.

"NAFCU welcomes this legislation to tackle the data security issue from a financial institution perspective," said Thaler. "We appreciate this bipartisan move by Senators Blunt and Carper to create a national standard of data protection for retailers. We urge the Senate to support this reform effort to make consumers safer and provide regulatory relief to financial institutions."

This bill would:

  • protect the ability of consumers and financial institutions to sue retailers for actual financial damages for negligence in the wake of a data security breach and for punitive damages in the case of a willful violation of the Act;
  • clarify that financial regulators such as the National Credit Union Administration (NCUA) would maintain authority over financial institutions, while the Federal Trade Commission would have jurisdiction over those currently unregulated, such as retailers; and
  • consider financial institutions already in compliance for their adherence to Gramm-Leach-Bliley standards, a move that NAFCU has supported.

On a related note, NAFCU President and CEO Dan Berger will advance credit unions' critical role in data security when he testifies before the House Small Business Committee April 22 during a hearing titled "Small Business, Big Threat: Protecting Small Businesses from Cyber Attacks."He will address the association's key data security principles and present how credit unions have successfully minimized data breaches.

NAFCU was the first financial trade organization to call for national data security standards for retailers, and it continues to push for legislative action on Capitol Hill. NAFCU is a member of the Payments Security Task Force, a diverse group of participants in the payments industry that is driving a discussion on payments system security. NAFCU is also a member of the Financial Services Sector Coordinating Council and the Financial Services Information Sharing and Analysis Center, which work on infrastructure cybersecurity.

The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.

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Contact: Patty Briotta | 703-842-2820 | pbriotta@nafcu.org