ICBA: Community banks reissue millions of cards after data breach
by MBJ Staff
Published: February 19,2014
WASHINGTON — The Independent Community Bankers of America (ICBA) reports the nation’s community banks have already reissued more than four million credit and debit cards at a total reissuance cost of more than $40 million following recent data breaches at major retailers (numbers are based on a sampling of community banks).
Due to their quick action in reissuing affected cards, ICBA says community banks’ initial fraud costs were relatively low, with less than 1 percent of community bank customers reporting fraud on their accounts following the breaches at Target and Neiman Marcus.
“Community banks absorb the costs of data breaches upfront because their primary concern is to protect their customers,” Bill Loving, ICBA chairman and president and CEO of Pendleton Community Bank, Franklin, W.Va., said. “However, in the long-term the lion’s share of costs associated with data breaches should ultimately be borne by the party that experiences the breach. This is critical to aligning incentives to maximize data security by all parties that store consumer data — making the payments system stronger over time, which is a win for everyone, especially consumers.”
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Alcorn president launches new customer service task force
- NEW IN MADISON COUNTY — Mississippi Bio-Medical Business Collaboratory to be introduced Friday
- David Duval, former British Open winner, joins Sanderson Farms field
- Court rules against Greenwood councilwoman; must give up office
- GreenTech holds grand opening of neighborhood electric vehicle plant
- Cochran continues to reach out to African American voters
- Turner Grain’s bankruptcy will help consolidate lawsuits alleging breach of contract
- Peoples Bank reports quarterly loss due to bad loans
- Senators write letter over Waters of the United States proposal