NAFCU cited last week's news of a data security breach at51UPS franchise stores to support its comprehensive call forgreater regulations of retailers and others who handle sensitiveconsumer data.

“The Target breach of over 110 million records has been especiallyonerous on credit unions,” the association wrote in its letter tothe leadership of both houses of Congress. Our member credit unionsreport that, on average, they have received hundreds of inquiriesfrom their members seeking assistance due to the breach,” wroteNAFCU Senior Vice President of Government Affairs and GeneralCounsel Carrie Hunt in an Aug. 21 letter to Congressionalleaders.

NAFCU estimated that the Target breach could end up costing thecredit union community nearly $30 million.

“This cost comes from fraud monitoring, reissuance of cards andactual losses from this breach. It does not even count theintangible cost of the staff time needed to handle all of themember service issues that stem from the breach,” Hunt wrote.

The association also pointed to a survey of its members whichfound that the median loss of the 2006 breach at TJ Maxx was $32,000 per credit union. Most credit unionsrecovered only around $3,200 of these losses, NAFCU noted.

The trade group reiterated its call for Congress to take upincreased data security when it returns to business in Septemberand cited increasing regulation on the way retailers handleconsumer information as a priority for the new legislation.

“Financial institutions, including credit unions, have beensubject to standards on data security since the passage of theGramm-Leach-Bliley Act and it is critical that any data securitylegislation include language to ensure they are not subject to anynew onerous or duplicative regulations,” Hunt wrote.

She continued, “However, retailers and many other entities thathandle sensitive personal financial data are not subject to thesesame standards, and they become victims of data breaches and datatheft all too often.”