WASHINGTON (3/12/15)--CUNA President/CEO Jim Nussle issued a strong statement Wednesday rebutting merchants' most recent talking points on data breach issues. Nussle said the retailers mean only to distract attention from the true problem in data security.
"The retailers are using a nuance in talking points to distract from the real problem: retailers are not protecting consumers' data, face no legal requirement to do so and get to watch as others fix the problems they create. The American public loses when the folks left holding the bag for merchant data breaches are the card-issuing credit unions and banks," Nussle declared.
"Consumers will benefit if the retailers would support a strong federal data protection law that codifies a requirement that those who accept cards for payment follow the same security standards as those who issue cards for payment," the CUNA leader said. He pointed out that the merchants are suddenly trying to divert attention away from that fact by making the discussion about reimbursements.
Nussle continued, "We're 15 months from the Target breach yet credit unions have received nothing in terms of reimbursement. The same goes for the Home Depot breach. The merchants responsible for the largest breaches over the last two years have paid absolutely nothing while credit unions have had to pony up at least $90 million to cover the costs for merchant data breaches.
"Now, the same day that retailers are playing shell games over merchant data breaches, a Verizon report found that a staggering 80% of merchants aren't even following the industry card security standards, meaning this is a problem sure to repeat itself." (See related story: 80% of global merchants flunk card data security: Verizon report.)