WASHINGTON—Bank and CU trade organizations are again aligning to challenge claims from retail groups regarding cyber-security measures and solutions to address the onslaught of data breaches.
In a letter to Congressional leaders, seven industry trade organizations—including NAFCU, CUNA, The American Bankers Association and Consumer Bankers Association—claimed a recent letter to Congress from a group of organizations representing elements of the retail industry “is inaccurate and misleading, and recommends solutions that leave consumers vulnerable to enhanced risk of data breaches."
The joint letter also focused on how cyber-crooks are targeting retailers, which are not held to the same cyber-security standards as financial institutions.
"While merchants and financial institutions are both the targets of these attacks, a key difference is that financial institutions have developed and maintain robust internal protections to combat criminal attacks and are required by Federal law and regulation to protect this information and notify consumers when a breach occurs that will put them at risk,” the trade groups wrote. “In contrast, retailers are not covered by any Federal laws or regulations that require them to protect the data and notify consumers when it is breached."
Significant regulatory requirements and internal safeguards are already in place at U.S. financial institutions with respect to data security since the passage of the Gramm-Leach-Bliley Act in 1999. In contrast, no similar internal safeguard regime and regulatory oversight exists with respect to retailers and others, the letter stated.
"The financial services industry is committed to working with all stakeholders to ensure that data breach protections are a shared responsibility requiring everyone in the payments chain to have a heightened awareness of potential emerging threats and work to address them," the trade groups said in closing.
The letter was sent to Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, Speaker of the House John Boehner and Minority Leader Nancy Pelosi.
Related links
NASCUS CU Cyber Security Symposium