Earlier this week, CUNA announced that the Target data breach could cost credit unions up to $30 million, according to preliminary results from a CUNA survey.
As of January 16, a total of 936 credit unions have responded, but only 12 of those are from Kansas. If you have not taken the survey, please do so as this information will provide a more complete report regarding the breach.
The results of the CUNA survey show that, on average, the Target breach has cost credit unions about $5.10 per card affected by the security lapse. These costs most likely do not include any fraud losses, which are likely to occur later. Additionally, the cost/card figure is an average across all affected cards, not just cards that have been reissued.
On January 3, CUNA posted an online questionnaire for member credit unions to report the effects of the Target data breach first announced on December 19. All league/CUNA credit unions offering either debit and/or credit cards received an email from CUNA CEO Bill Cheney requesting completion of the survey.
Below are a summary of the results so far. In this report, an "affected” card is a debit or credit card about which the credit union’s processor or network has informed the credit union that the card has been or may have been compromised in the breach.
Credit unions are still gathering information about the costs of the breach. Once credit unions have had sufficient time to respond to the survey, CUNA will provide a more complete report of the results.
NATIONWIDE SUMMARY RESULTS:
99% of responding credit unions offer debit and/or credit cards to their members.
93% of responding credit unions had been notified by their processor or network that some of their members’ cards had been affected.
42% report being first notified on December 19,
20% report being first notified on December 20,
12% report being first notified on December 21,
1% report being first notified on December 22 (a Sunday),
18% report being first notified on December 23, and
7% report first being notified sometime after December 23.
The total number of affected debit cards at reporting credit unions amount to approximately 8% of outstanding debit cards at those credit unions.
The total number of affected credit cards at reporting credit unions amount to approximately 4% of outstanding credit cards at those credit unions.
Responding credit unions report the following actions or plans concerning card reissuance:
77% will reissue or have reissued all affected cards.
21% will reissue or have selectively reissued cards in response to member requests or other factors.