Target Breach: CUNA/CBA Member Costs Top $200M
The cost of the Target data breach has surpassed $200 million, according to data collected by CUNA and the Consumer Bankers Association.
In a joint release from the two trade associations, the CBA said the approximate cost of card replacements for its members has hit $172 million, up from the initial $153 million estimate.
CUNA said the financial impact of the breach on credit unions has reached $30.6 million, marking an increase from the trade group’s original $25 million estimate.
“So far, cards replaced by CBA members and credit unions account for more than half of all affected cards,” said the Tuesday release.
Among members of both organizations, 21.8 million of 40 million compromised cards have been replaced, which represents 54.5% of the cards Target said had been compromised in the breach.
“Credit unions have replaced or will replace 85% of their cards affected by the Target breach at no cost to their members,” said CUNA President/CEO Bill Cheney. “The combined $200 million cost borne entirely by banks and credit unions shows the extent to which financial institutions will go to protect their customers and members.”
The trade organizations noted that the combined $200 million cost does not account for costs to financial institutions other than credit unions or CBA members. The total also does not include any past, present or future fraudulent activity, which would raise the cost of the Target data breach.
“Financial institutions of all sizes have been aggressive in ensuring their customers are protected in response to the Target data breach,” said CBA president/CEO Richard Hunt. “CBA’s members have proactively replaced cards, increased fraud monitoring efforts and have expanded call center hours.”