Minn. survey finds 3rd of cards replaced due to fraud
April 2, 2015
ST. PAUL, Minn. (4/3/15)--A statewide survey indicates that more than one-third of Minnesotans have had a credit or debit card replaced because of fraudulent use or a data breach.
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The survey was conducted for the Minnesota Credit Union Network (MnCUN) by Fluence Media and American Strategies.
"The costs of data breaches and card replacements place a major burden on credit unions and other financial institutions," said MnCUN President/CEO Mark Cummins. "We should update our laws and regulations to hold retailers accountable for data breaches that impact customers and violate the level of trust consumers have."
Despite a record number of retail data breaches in the past 18 months, only 36% of Minnesotans blame stores when their personal financial information is compromised.
Nationwide, credit unions have incurred nearly $90 million in costs responding to data breaches just from Target and Home Depot, including those for reissuing debit and credit cards, increasing call center staff and setting up account monitoring. Minneapolis is home to Target's headquarters.
Additionally, 59% of Minnesotans believe that stores should pay if they are responsible for the replacement of a card because of a data breach or hacking incident.
Forty-two percent of those under 50 years of age have been affected while 28% of those over 50 have been impacted by data breaches. College-educated Minnesotans are also more likely to have been impacted than non-college-educated respondents.
The poll of 500 likely Minnesota voters was conducted in January.
CUNA continues to press lawmakers to pass legislation that would require merchants to meet the same strict payment data security standards required of financial institutions.