ST. LOUIS (3/12/14)--The data breach that bit St. Louis-based Schnucks supermarkets last April has dealt at least a $1 million blow to Missouri credit unions, a Missouri Credit Union Association (MCUA) survey found.
When MCUA leaders attended the Credit Union National Association's Governmental Affairs Conference in Washington last month, they made sure to relay the financial implications of the breach to elected officials.
"Being able to provide members of Congress with hard numbers about the impact of the Schnucks data breach on credit unions in Missouri had a real impact during GAC," said Amy McLard, MCUA senior vice president of advocacy. "This puts a cost and effect on how data breaches impact their constituents."
CUNA has repeatedly encouraged members of the U.S. Congress to address inconsistent rules that require credit unions and other financial institutions to follow high security standards while holding merchants to different standards. CUNA President/CEO Bill Cheney has also called on the House Financial Services Committee to hold hearings on the last year's Target data security breach. In addition to new payment security standards, merchants must also be held accountable for the damages that breaches to their systems cause financial institutions and consumers.
Credit unions who responded to the Missouri survey--28 in all--spent about $246,000 to replace compromised cards as a result of the incident. At least 67,900 credit and debit cards total had to be replaced, and the cost to reimburse members for fraudulent charges totaled about $643,000.
Not all credit unions who responded answered each survey question. About 2.4 million credit and debit card numbers were stolen at the time.
To help MCUA accurately illustrate the total impact, Missouri credit unions that have not responded to the survey and that suffered losses because of the Schnucks breach are encouraged to contact McLard at email@example.com or 314-542-1370.