WASHINGTON--(BUSINESS WIRE)--National Association of Federal Credit Unions (NAFCU) Vice President of Legislative Affairs Brad Thaler today issued the following statement to set the record straight after the recent ads and announcements from the National Retail Federation (NRF) on data security:
“Retailers should be part of the solution to address data breaches. Unfortunately, they continue to cast blame on financial institutions by their selective and misleading use of data. According to the Verizon 2013 Data Breach Investigation Report, a breakdown of incidents across various industries actually resulting from network intrusions, the retail industry was far and away the number one target, with nearly 22 percent of network intrusions occurring at retailers while the finance sector was far down the list with just over 8 percent.
“It is time they stopped playing fast and loose with the truth about data security. Chip-and-PIN technology is no panacea and does not replace the need for national standards on data security. Those failing to protect data should be held responsible when data breaches occur.
“Despite their claims to the contrary, the retailers continue to leave consumers and financial institutions picking up their tab when they (the retailers) are breached.
“Credit unions and other financial institutions are required to comply with basic, federal standards for data security under the 1999 Graham-Leach-Bliley Act. NAFCU believes retailers should be held to the same standards. As evidenced by the continuing reports of data breaches, cybercriminals will continue to capitalize on this double standard and wreak havoc with consumers and our economy.”
The estimated costs of the Target breach alone on credit unions is close to $30 million dollars. Credit unions are the ones who have monitored (and continue to monitor) their members’ accounts for possible fraud charges; who reimbursed consumers whose accounts were compromised; and who replaced thousands of debit and credit cards that were potentially affected.
“We agree that it is important to work together to prevent data breaches and protect the American consumer. We just wish the retailers would take more responsibility and pick up their part of the bill when they are at fault.”
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.