February 11, 2014

NAFCU, others call for increased data security

Feb. 12, 2014 – NAFCU joined five other financial organizations Tuesday to call for increased data security standards for retailers in response to a National Retail Federation briefing advocating chip-based technology.

"Once again, the NRF is more interested in pointing fingers than accepting responsibility for their role in protecting consumer data," the statement said. "That's a distraction. Plain and simple, the Target breach – and the others recently in the news – had little to do with card technology and everything to do with failed computer security at major retailers.

"Chip-based technology should be part of the discussion," they continued, "but it's not the whole solution … Protecting consumer data is a shared responsibility, and merchants must have the same tough data security as banks to thwart hackers."

The statement was signed by NAFCU and the American Bankers Association, the Consumer Bankers Association, the Independent Community Bankers of America, CUNA, and the Clearinghouse.

In related news, Sens. Mark Kirk, R-Ill., and Mark Warner, D-Va., urged the Federal Trade Commission to support the creation of a Merchant and Retail Industry Information Sharing and Analysis Center, which they called "MRI-ISAC" and would establish a database for data security threats targeting retailers.

NAFCU was the first financial trade association to call for increased data security standards for retailers following the Target Corporation breach.