WASHINGTON (11/3/14)--The Credit Union National Association's survey on the effect of the Home Depot data security breach on credit unions--a tab of nearly $60 million and 7.2 million compromised cards--gained quick attention from media nationwide.
|HousingWire featured CUNA's survey of credit unions and the effect of the Home Depot data breach on the front page of its website Friday.|
Many pressed the severity of the costs that credit unions are bearing due to breaches, such as HousingWire, which featured the survey on the front page of its website. A few--The Hill, Politico, Ars Technica and PYMNTS.com--captured the backlash to the survey by merchant associations.
In Youngstown, Ohio, The Business Journal tapped Patrick Harris, director of legislative affairs, Ohio Credit Union League, for a breakdown of the numbers to a state level (Oct. 31). Seven Seventeen CU, Warren, reported fraud losses of $6,000 because of the breach at Home Depot, said Eric Lanham, senior vice president and director of marketing at the $831 million-asset credit union. Seven Seventeen had to reissue 7,500 debit cards and 850 credit cards at a cost of $18,500. "We didn't do anything wrong," Latham told the publication. "Our members didn't do anything wrong. But we're the ones who have to absorb the expense. It costs all of us."
Mike Kurish, president/CEO, Associated School Employees CU, Youngstown, told The Business Journal it cost $5,000 to notify members and reissue credit and debit cards. More than 1,000 members of the $146 million-asset credit union have been affected. Members are further inconvenienced because they must update card information on file with merchants for recurring payments such as charitable contributions or club memberships.
Harrisburg, Pa., TV station WHP-21 captured the reaction of Pennsylvania Credit Union Association President/CEO Patrick Conway. "We know that data breaches cost credit unions millions of dollars every year, and this survey provides actual dollar figures for just one particular breach," Conway said. "Every dollar spent on data breaches is money that is not spent on enhancing member services. We are urging Congress to pass legislation that forces merchants to increase their security measures and be held accountable for costs incurred by breaches."
Patrick La Pine, president/CEO, League of Southeastern Credit Unions, was cited in the Birmingham (Ala.) Business Journal. "The costs to credit unions by data breaches--which seem to be occurring with increasing regularity--are rising, as the CUNA survey clearly demonstrates. The bottom line is that credit union member-owners end up paying the costs despite the fact that the credit unions are not at fault in causing the breaches in the first place."
WTOC-11 in Savannah, Ga., John Kerley, chief operating officer, Cooperative Services Inc., a credit union service organization owned by 53 credit unions in Georgia, said credit unions are taking the brunt of the fiscal damages incurred by data breaches. "Merchants, which allowed the breaches to occur, have no financial responsibility to make the consumer or the financial institution whole," Kerley said in the Oct. 31 report.
Greg Strizich, president/CEO of $154 million-asset Helena (Mont.) Community CU, told the Helena Independent Record that the credit union has spent more than $10,000 issuing thousands of new cards this year."The thing that is perhaps most alarming to me is how fast and furious the breaches have been coming," he said.
Other media mentions included: