Newsroom

December 18, 2014

Berger marks 1 year since Target breach disclosure

An editorial by NAFCU President and CEO Dan Berger today in American Banker pledges NAFCU's continued vigilance in seeking action to secure national data security standards for merchants.

Berger notes that today, one year after the massive breach at Target Corporation was disclosed, consumers and their data remain vulnerable as ever. The year has been marked by breach after breach exposing consumers to account and data theft as well as potential identity theft.

Citing NAFCU estimates, Berger noted that the Target breach alone cost financial institutions nearly $500 million in card replacement costs and other expenses yet merchants and retailers remain outside federal laws and rules on consumer data protection.

"This disparity in data security standards is both irrational and hazardous for our economy," Berger writes. "No amount of diligence on the part of financial institutions will help prevent future data breaches if retailers are not held responsible by national data security standards like the ones applied to financial institutions under Gramm-Leach-Bliley," he said, referring to the 1999 GLB Act.

NAFCU was the first financial industry trade to call on Congress to pass national data security standards for retailers in the wake of the Target breach. NAFCU is preparing to continue to press for action when the 114th Congress begins in January.