WASHINGTON—NAFCU President and CEO Dan Berger testified this morning during the Committee on Small Business hearing titled, Small Business, Big Threat: Protecting Small Businesses from Cyber Attacks.
The purpose of the hearing is to examine the current state of cyber-security for small firms and steps that can strengthen their efforts in information protection.
Berger outlined the top cyber- and data security challenges for credit unions and provided legislative solutions. Berger emphasized that credit unions and other financial institutions already protect consumers’ personal data under the provisions of the 1999 Gramm-Leach-Bliley Act. He noted there is no comprehensive federal regulatory structure similar to GLBA for other entities, such as retailers, that handle sensitive personal and financial data.
In a recent survey, NAFCU members said they spent $136,000 on data security measures in 2014, and that the estimated costs associated with merchant data breaches in 2014 were $226,000, on average, per credit union. Berger also emphasized the devastating impact breaches can have on consumers and small businesses.
Berger’s testimony is available here.