Last year's card security breaches at Target and other retailers have forced community banks to reissue more than four million debit and credit cards at a cost of $40 million, according to the Independent Community Bankers of America.

The association claimed that banks' quick decision to close and reissue debit and credit cards significantly cut their fraud losses, as fewer than 1% of community bank depositors reported losses from fraud on their accounts so far.

"Community banks absorb the costs of data breaches upfront because their primary concern is to protect their customers," said Bill Loving, ICBA chairman and president/CEO of Pendleton Community Bank in Franklin, W.Va.

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