February 03, 2014

2nd CU sues Target over data breach

First Choice FCU in New Castle, Penn., announced Friday it has filed a class action lawsuit against Target Corporation due to the costs associated with its data breach.

CU Journal reported that in First Choice FCU's lawsuit it noted that it has had to cancel and reissue 75 cards for its members and also may have to reimburse any fraudulent charges, lost interest and other expenses on members' accounts.

First Choice FCU is the second credit union to file suit against Target. Alabama State Employees Credit Union, of Montgomery, filed a class action suit against Target in early January.

In a letter pressing for national data security standards for retailers sent Monday to the Senate Banking Subcommittee on National Security and International Trade and Finance ahead of a hearing on data security, Berger pointed to a January 2014 survey of NAFCU-member credit unions that found, on average, credit unions were notified more than 100 times in 2013 of possible breaches of their members' financial information.

The survey also found the cost for credit unions to replace new plastic cards to members ranged in cost from $5 to $15 per card.