Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Merchants low data security standards harm consumers CUNA
WASHINGTON (12/2/11)--Data security is a critical issue and the U.S. Congress should consider legislative changes to protect consumers, such as requiring merchants to meet the same high standards for data protection to which credit unions and other financial institutions are subject, the Credit Union National Association (CUNA) said in a letter sent to a key lawmaker Thursday.

Additionally, Congress should permit financial institutions to disclose the source of data breaches affecting their members or customers, and merchants should be required to reimburse consumers and financial institutions for costs associated with data breaches, CUNA President/CEO Bill Cheney wrote in a letter to the chairman of the House Small Business subcommittee on health and technology, Rep. Renee Ellmers (R-N.C.). The subcommittee conducted a hearing yesterday entitled hearing "Cyber Security: Protecting Your Small Business."

Cheney wrote that until merchants are held to high standards for data security as financial institutions, such as credit unions, are, the consumer will "remain vulnerable to a system that does not protect their information."

Without federal requirements forcing merchant to notify their customers of a data breach, the burden of notification to the consumer lies with the financial institution that issued the payment card.

"However, financial institutions cannot specify which merchant was responsible for the breach and also bears the costs of issuing new payment cards, and making any loss to the consumer's account whole. The merchant bears no financial responsibility in the case of a data breach," Cheney underscored in his letter to Ellmers.

Use the resource link to read CUNA's complete letter.


RSS





print
News Now LiveWire
.@CUNA staff preparing for today's #RBC2 webinar http://t.co/9rVX41DLfQ
45 minutes ago
DE designation earned by 43 #creditunion professionals http://t.co/PvIvzTqSt5
1 hour ago
.@TheNCUA Exec. Dir. Treichel announces Peggy Sherry as agency’s deputy CFO as of today. Sherry joins NCUA from Internal Revenue Service.
1 hour ago
.@TheNCUA has named Peggy Sherry Deputy CFO. http://t.co/Tf4XjHcYIp
1 hour ago
Kenyan CUs intersect with @gatesfoundation vision to alleviate poverty http://t.co/fXAyX6FNdG
1 hour ago