As concerns over data breaches continue to grow, national safeguards and standards must be established to protect credit unions and their members.
Data security breaches are a serious problem for both consumers and businesses. Currently, credit unions are subject to strong data security standards established by Congress and federal regulators. Unfortunately, merchants and retailers are not subject to the same federal requirements and many of them follow their own data security standards. However, high profile breaches at numerous retailers proves that much more needs to be done to protect consumers' financial data. That is why we are fighting for a comprehensive federal data protection standard to ensure that all entities that handle consumer information, not just financial institutions, are keeping consumers’ data safe.
How This Impacts You
Cybersecurity continues to be a top priority for credit unions. Despite the fact that many financial institutions have implemented sophisticated and effective data security safeguards, attackers are constantly adapting to evolving technology and finding new ways to access systems. Credit unions must make efforts to stay one step ahead to protect their members, which can require significant resources. A recent NAFCUreported that the number of credit union employees devoted to IT compliance has nearly doubled since 2010. Furthermore, a large majority (82 percent) of survey respondents reported that they were impacted by a local merchant breach within the past two years. After a data breach occurs, credit unions bear a significant burden as they incur steep losses in order to reestablish member safety.
Support Legislation to Create a National Data Security Standard
Urge your representatives to support a strong national standard of data security for all entities that handle sensitive consumer financial information.