CUNA warns Congress of ‘dangerous moral hazard’ amid breach responses

first_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr “The idea that retailers have no responsibility for protecting consumer data presents a dangerous moral hazard,” Credit Union National Association President/CEO Bill Cheney said in a letter sent Monday to all members of the U.S. Congress.That danger, Cheney warned lawmakers, is reflected in the current effort by retail organizations to try to shift both the cost and liability during breaches away from the retailers involved and on to financial institutions, their customers and members, and taxpayers.The CUNA letter comes as many in Congress and across the country debate how best to respond to recent data breaches at Target and Neiman Marcus that have compromised the financial and personal information of tens of millions of Americans. Arts and crafts store Michaels has also launched its own investigation into a potential data breach at its stores, and the Federal Bureau of Investigation in recent weeks has warned retailers these breaches will become more common. (See Jan. 27 News Now: FBI warns hacking attacks are on the rise.)CUNA was the first trade group to communicate with members of Congress following the breach, seeking hearings on the issue, and House and Senate members in at least three committees are considering holding hearings on the topic, perhaps as early as next week. (See related story: Senate Banking to conduct Feb. 3 data security hearing.) continue reading »last_img