TOLEDO, Ohio (6/19/15)--A conversation coordinated by the Ohio Credit Union League between reporters and credit union leaders has resulted in a lengthy feature about retailers’ lax cybersecurity and its impact on credit unions and other financial institutions in the June Toledo Business Journal.
The article, “Retail cyber security harming area financial institutions: Federal legislation introduced in Congress to address data protection,” cited CUNA’s research about the impact of the Target data breach in which credit unions “were left on the hook for $30.6 million” and had to reissue roughly 4.6 million credit and debit cards.
“In March, Journal President Sanford Lubin and reporter Beth Vollmar met with four area CEOs and discussed a range of issues, and their interest was caught by the impact data breaches have on financial institutions and their customers,” said the league (eLumination News June 17).
Afterward, “the league worked with Lubin to provide statistical information and further understanding of the impact, resulting in the article.” The league said it regularly coordinates such meetings to build and maintain relationships with reporters.
The Journal’s article featured an in-depth interview with Barry Shaner, president/CEO at Directions CU, Sylvania, Ohio, who said fraudulent transactions from retailer breaches not only cost the credit union money but cost individual consumers, who must go without a debit or credit card while that card is replaced.
He noted in the past six months, the credit union incurred more than $100,000 in fraud losses from card compromises at retailers. Every dollar lost means “dollars we can’t use to benefit our members in other ways,” he said.
The article also discussed the Data Security Act (H.R. 2205), which would establish national standards related to cybersecurity and breach notifications. CUNA and credit unions support the provision.