SAN FRANCISCO (10/7/14)--Two credit unions were recently cited in USA Today (Oct. 3) for the way they have been tracking fraudulent charges that are made on their members' credit and debit cards in the wake of the major Home Depot data security breach.
Rob Miller, chief operations officer for Mission FCU, San Diego, with $2.5 billion in assets, told the national newspaper that, over the last month, the credit union has received more than $100,000 in fraud claims that could be linked to cards compromised during the Home Depot breach.
As credit unions are not-for-profit, Miller said, if Mission is hit with the full $100,000, it could mean $100,000 that the credit union may not be able to give back to members through higher interest rates or lower loan rates (USA Today).
Miller also discussed the costs associated with replacing cards that have been compromised.
Since the Home Depot breach was publicized, an incident that has exposed at least 56 million credit and debit cards nationwide, according to the home improvement retail giant, Mission has discovered 28,000 compromised cards that it will replace for its members.
"That's about 15% of the credit cards we issue," Miller told USA Today, adding that at $2.60 per card, the replacement cards will cost Mission $72,800.
The Credit Union National Association is tracking breach-related activity and costs that result from the Home Depot breach through a survey it released Oct. 2 nationwide.
The survey, which can be accessed using the resource link below, will allow CUNA to compile data that will help illustrate the impact the breach has had on the credit union industry.
CUNA is collecting the following information:
Brad Barnes, chief financial officer for Air Academy FCU, Colorado Springs, Colo., with $476 million in assets, spoke about how Air Academy first identified that unlawful transactions were taking place.
When transactions started cropping up in locations on the other side of the world, red flags shot up.
"Our people travel, many of them are Air Force, but we don't have a whole lot of customers who go to Indonesia," Barnes told USA Today.
Meanwhile, on Monday Politico highlighted CUNA's recently launched campaign and website www.StopTheDataBreaches.com, which aims to rally members to urge lawmakers to pass legislation that would require merchants to adhere to the same strict data security standards financial institutions face.
"When a data breach occurs, the merchants pay NONE of the costs to send individuals their new cards or the fraudulent charges an individual may have on their cards or accounts," the website says (Politico Oct. 6). "In fact, the merchants are not required to pay ANY costs incurred from their own data breaches."