ALEXANDRIA, Va. (12/30/14)--National Credit Union Administration Inspector General James Hagen intends to take action in January in response to a data breach caused by a lost thumb drive during an NCUA examination at a California credit union, he announced Monday.
The breach, which occurred earlier this month, was caused by the loss of the drive, which contained member information, during an examination of Palm Springs FCU, with $12 million in assets.
Per Hagen's statement, beginning in January he intends to launch the following:
According to the NCUA, its inspector general "will proceed in a thorough and deliberative manner in all these activities." There is no set deadline for their completion.
The NCUA has confirmed the loss of the thumb drive, but said the lost information did not include member passwords or PINs, and no unauthorized attempts to access accounts has occurred. NCUA board member J. Mark McWatters has called on the agency to "unambiguously" take responsibility for the loss of the drive. On Dec. 16 he said that, in his view, the NCUA Office of Inspector General should consider investigating the matter (News Now Dec. 17).
CUNA has urged the NCUA to conduct a thorough review of the situation and commended McWatters, who has called for transparency in the matter.
The agency previously announced it would create a team to review the circumstances surrounding the lost drive, study whether federally insured credit unions should be required to encrypt electronic member information and evaluate development of a secure information-sharing portal.