The time is now for Congress to enact stricter data security standards that better protect credit unions and consumers, CUNA President/CEO Jim Nussle wrote Thursday in Credit Union Journal. Nussle noted that with the heads of Facebook and Twitter before Congress last week and the markup of a data breach notification bill this week, data security is on a lot of policymakers’ minds right now.
“For credit unions, data security has been top of mind for a long time now, as hundreds of credit unions have spent millions of dollars re-issuing payment cards and reimbursing fraudulent purchases due to retailer data breaches,” Nussle wrote. “The strict data security standards that credit unions must comply with under the Gramm-Leach-Bliley Act cannot protect consumers from lax data security standards by merchants.
"Now that data security is at the forefront for policymakers here in D.C., it’s time for credit unions to make our voices heard and tell Congress we need data breach requirements that work for anyone that handles sensitive consumer information,” he added.
Nussle also highlighted the principles that CUNA believes should be part of any data breach legislation:
“This kind of legislation would require retailers to protect valuable consumer information the same way credit unions are already required to,” Nussle wrote. “Lawmakers need to know that credit unions can’t afford to foot the bill for any more data breaches while those responsible for the breaches aren’t crushed by the consequences.”