COLUMBIA, S.C., and RALEIGH, N.C. (2/7/14)--John Radebaugh, CEO of the Carolinas Credit Union League, shared credit union concerns about data security with congressional delegations from North Carolina and South Carolina.
Prior to this week's lineup of committee and subcommittee hearings on data security and cybersecurity, Radebaugh sent a letter to each state delegation office, customized with state data.
"Credit unions...understand and appreciate the complexity of data security," he wrote, adding, "Our frustration with merchants, particularly in instances like the Target breach, is with lack of responsibility and accountability when a breach occurs" (
In the Loop
Radebaugh recommended these objectives:
- Subject merchants to the same type of data security standards that credit unions follow;
- Require merchants to reimburse credit unions for the costs they incur as a result of merchant data breaches; and
- Permit credit unions to identify the merchant at which a data breach occurs.
He added, "Perhaps most frustrating for credit unions is that the lack of merchant accountability leaves vulnerable the very heart of member relationships credit unions work so hard to build.
"When a merchant breach occurs and a credit union is unable to tell a member the responsible merchant's name, the member often assumes wrongly that the compromise is the result of negligence by the credit union," he said.
"It is only fair that we be allowed to offer greater reassurance and in doing so add incentive for merchants to protect consumer data."
The league will follow up with state delegations during the Credit Union National Association's Governmental Affairs Conference Feb. 23-27.
CCUL's advocacy and education efforts regarding data security going forward will include letters to the editor from Radebaugh, engaging credit unions within regional media markets and providing customizable templates for credit unions.