Category Archives: banking

Top Concern for Credit Unions Rhymes with Lata Becurity

Data Security is the number one concern for credit unions according to the National Association of Federal Credit Unions. 

Their concern is founded in fact. In 2014, 317 million new pieces of malware were created according to Symantec’s 2015 Internet Security Threat Report. Data breaches have been increasing by 20% per year. 

This group supports legislation that includes:

  • Payment of Breach Costs by Breached Entities
  • National Standards for Saf…

Financial Institution Sues Retailer Over Data Breach

An Illinois Credit Union has sued Kamart/Sears over a 2014 data breach because the retailers reaction to a data breach harmed financial institutions. Here’s why, note same thing can happen in Texas:

  • The financial institutions were required:
    • to refund fraudulent charges
    • respond to a higher volume of customer complaints, and
    • increase fraud monitoring efforts
  • The financial institutions lost revenue
  • The retailers faile…

FTC: Poor Fit to Require Retailers & Banks to Follow Same Rules

The Federal Trade Commission issued a report saying its a bad idea to apply banking rules to retailers. 3 Reasons Why:

  •  “burdensome to nonbanks”
  • “Retailers lack the authority over payment cards to maintain certain data security obligations”
  • “The FTC lacks the supervisory examination and resources to provide specific guidance and oversight that would be necessary to cover every nonbank business”

Posted byadminPosted inbanking, data privacy, legislative trend, retail data breach

Silicon Valley Experts Talk Business Costs of Data Breaches

According to experts in Silicon Valley, data breach costs break down for business like this:

  •  80% less than $1 million in direct costs and damages
  • 15 % of breaches cost between $1 million and $20 million
  • 5% cost more than $20 million to investigate, deal with and pay legal costs
  • Average Cost is $7Million 
  • Only 8% of businesses are buying cyber insurance coverage

Posted byadminPosted inbanking, data privacy, legislative trend, retail data breach

Lege Trend: Federal Data Breach Legislation

Last week Congressmen Barton (R-TX) and Rush (D-IL) filed data breach notification legislation. Feds want to protect personal, private information and the states are quickly passing bills that further protect their citizens. 

What you need to know about the federal bills:

  • Act Name: Data Accountability and Trust Act (DATA Act)
  • Bill Number: HR 580
  • Senators Feinstein, Pryor, Rockefeller, and Nelson filed similar, but not identical bill:
    • Data S…

Data Breach Liability for Retailer? Is there a Financial Cap for a Grocer?

Retail data breaches lead to class action lawsuits. They’re new. They’re trendy.

How financial liability for a breach is assessed is a developing legal trend. Legal trends turn into legislative trends as states grapple with assigning liability.

Today the retailers & the banks are at odds over this in policy court. To add fuel to the this policy fire, a federal court sided with a retailer against financial institutions by limiting a grocer’s liability to:

  • $5…

Health Care Data Breaches- Hackers or Human Errors?

Since 2009, health care data breach statistics are:

  • 8%  involve hacking
  • 40.9 million individuals’ records have been exposed
    • Of the individual records, 19%, were blamed on hackers
      • This includes a hack, allegedly by Chinese hackers ,to the health care data at Community Health System in Franklin, TN, resulting in stolen personally identifiable information on 4.5 million individuals.

President Obama’s federal data …

Kerfuffle: Financial Institutions v. 6 Retailer Groups- Which Bears the Financial Burden for a Data Breach?

The fighters for financial institutions:   Independent Community Bankers of America  

The fighters for retailers: Retail Industry Leaders Association, National Retail Federation, National Grocers Association,  Merchant Advisory Group, National Association of Convenience Stores, Food Marketing Institute, &  National Restaurant Association 

 Why did the kerfuffle start: Banks assert that they absorb the heaviest burden “f…