June 3, 2014 - In Response to the Target Data Breach, Community Banks Make Lemonade out of Lemons
June 3, 2014
By: Stella Szantova Giordano
Connecticut Banking Magazine
Virtually everyone has heard of the Target data security breach, in which the credit and debit card information of more than 40 million customers was stolen during the 2013 holiday shopping season. In its aftermath, the press and the media focused on the impact the Target breach has had on consumers. In contrast, much less attention was devoted to the strain the Target breach caused downstream - notably on banks who had to reissue debit cards for their customers whose personal information was (or was suspected to be) compromised. According to the Consumer Bankers Association and the Credit Union National Association, the cost to banks and credit unions cleaning up the mess caused by Target has been estimated at over 200 million. A big part of the expense was the cost of card replacements. Instead of Target reimbursing the banks for the costs and expenses they had to incur in the process, it was the banks that had to bear the cost of remediation for a breach they did not cause and could not have prevented.
Click here to read the full CT Banking Magazine article. It can be found on pages 4-8.
2019 Murtha Cullina LLP All Rights Reserved.