WASHINGTON (10/29/15)--CUNA and a coalition of state leagues have coordinated a targeted and aggressive response to an effort by the retail industry to organize a letter from state attorneys general that claims chip-and-PIN technology can somehow scrub away cybersecurity problems entirely.
Alongside a number of electronic payments stakeholders, CUNA sent a letter to the attorneys general urging them to refrain from signing the letter, and to withhold support for the retailers’ claims.
The retailers gave the attorneys until Wednesday to sign the letter.
CUNA’s letter also reiterated that mandating the use of PIN technology would far from eliminate fraud or single-handedly secure the payments system.
“The push is rooted in an outdated narrative that PINs will prevent breaches,” said Shelton Roulhac, CUNA director of advocacy and legislative affairs, on CUNA’s compliance blog. “The truth is that there is no single technology that is a panacea when it comes to preventing fraud and data breaches.”
Roulhac added that to effectively combat cybercrime, all stakeholders must come together to create multi-layered and flexible solutions that apply to the myriad cybersecurity-related situations that can arise, not merely credit card fraud.
The leagues stepped up engagement with their respective attorneys general by scheduling meetings and writing letters ahead of the deadline imposed by the retailers.
Twenty-eight leagues representing 39 states and Washington, D.C., have coordinated efforts to get in touch with their state attorneys general.
CUNA also continues to press federal lawmakers to enact legislation that would require merchants to uphold the same stringent payment data security standards imposed on financial institutions.
While technologies such as chip-and-PIN and tokenization are important pieces, the payments network won’t be secure until all stakeholders comply with the same strict set of standards, CUNA has said.