WASHINGTON (4/15/15, UPDATED 8:05 a.m. ET)--The Wall Street Journal has reported that MasterCard is about to announce a settlement in its case against Target to recover costs card issuers suffered due to a massive data breach of the retailer's systems.
"This is news that credit unions and other card issuers have been waiting too long to hear," CUNA President/CEO Jim Nussle said earlier today. "It is about time that Target steps up to its responsibilities in this breach. And it is long overdue for merchants to start living up to their responsibilities in protecting customers' sensitive information by adopting higher security standards. Congress must act and act now to stop the data breaches."
The publication describes the settlement to reimburse financial institutions of "roughly $20 million"--the figure is attributed to "people familiar with the negotiations." CUNA will be working closely with MasterCard to determine the amount of the settlement that will be dedicated to credit unions' costs.
The article goes on to say that sum "covers the costs" card issuers incurred when they reissued credit and debit cards to protect their cardholders from fraud due to the breach. It is said to cover "some of the fraud" that resulted from the exposure of customer information.
CUNA has actively engaged both the card networks in an effort to help recover credit unions' costs from the Target and other breaches. "We appreciate the open dialogue that MasterCard has had throughout this process, and we understand that they have an aggressive communication plan to get information to their credit union customers. We stand ready to assist them in communicating with the credit union system," Nussle said.
The Journal said the MasterCard announcment could be as early as this week. Watch CUNA's News Now for more details.