X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON – Credit unions dropped millions, if not tens of millions of dollars in 2005 on the cost of closing and reissuing credit and debit cards for members whose card data was compromised in a series of enormous breaches of card security. The names of the cases, which came in rapid succession in the first and second quarter of the year, grew almost dizzying. BJ’s Wholeale Club started it all with the revelation that in March 2004 that it had lost card data that compromised the card security of thousands of customers, a breach which credit unions have joined with CUNA Mutual Group to litigate. But the BJ’s case was only the tip of a cascade of cases that flowed into 2005. Polo Ralph Lauren admitted that its point of sale software retained the credit card information of hundreds of thousands of its customers between June 2002 and December 2004. The fashion house was quickly joined by HSBC, Fifth Third, DSW, Lexus-Nexus..a roll call of major U.S. retailers and financial institutions who have had card data stolen has grown. Card security experts say that the problem may only grow, at least in the short term. And the king of them all, CardSystems Solutions a card processing firm headquartered in Atlanta, confirmed MasterCard’s June 17 statement that data from some 40 million cards, 13.9 million MasterCard’s and the balance spread over other brands, had been compromised. The impact of the series of breaches has yet to be fully totaled, even as 2005 comes to an end. They have forced reforms at different levels of the credit and debit card industry and have calls for accountability and legislation in different states and before the federal government. Currently, three different legislative approaches to the problem have been introduced, an indication that the topic will likely surface again in 2006.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.