Credit unions pay high price for data breaches

Wednesday 12 February 2014 08:33 CET | News

Credit unions and their 96 million members are paying a high price for retailers’ data breaches, recent findings indicate.

According to data from the National Association of Federal Credit Unions’ (NAFCU) the recent Target data breach could end up costing the credit union community almost USD 30 million. The same source unveils that among those surveyed, the average cost for the Target data breach was USD 45,000.

Research shows that respondents were alerted to a possible breach 263 times on average in 2013 and the average amount spent on data security measures was USD 158,600. Furthermore, they have reported an average of USD 152,000 for data breaches in 2013. The median cost was USD 59,000.

Results also point out that the bulk of these costs were related to fraud losses and investigations (46.7%), followed by reissue costs (34.4%) and monitoring costs (19%). Reissuing cards takes 7 days, on average, and costs USD 5 per card.

Survey respondents indicated that an average of 10,300 cards were affected by merchant data breaches in 2013 and Almost half (42%) of respondents confirmed that their reputation had been harmed due to a merchant data breach.

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Keywords: credit unions, data breach, online fraud, US
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime

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