Welcome!

Microservices Expo Authors: Yeshim Deniz, Elizabeth White, Pat Romanski, Liz McMillan, Zakia Bouachraoui

News Feed Item

ACB Data Breach Survey Highlights Need for Action by Card Networks and Congress

ACB Data Breach Survey Highlights Need for Action by Card Networks and Congress

WASHINGTON, Feb. 7 /PRNewswire-USNewswire/ -- A just-completed survey by America's Community Bankers reveals that data security continues to be a significant issue for community banks and their customers, and that card network and congressional action is necessary to address this far-reaching problem.

"These survey results, released with the backdrop of the recent TJX data breach, underscore the need for immediate attention from Visa and MasterCard and Congressional action," said Michael T. Crowley, Jr., chairman of ACB's recently formed Debit Card Fraud Committee. Crowley is also chairman, president and CEO of Bank Mutual, Milwaukee, Wis.

"These data breaches are disturbing, disruptive and costly. Consumer financial data is being exposed due to lax security at the merchant level. The foundation of our business, customer trust, is being jeopardized because of lack of enforcement of payment card industry standards by the card associations and lack of adherence to those standards by the merchants," Crowley added. "Unfortunately, it is the local community banks that are bearing the operational and reputation costs of the merchants' inability to protect consumer financial information," stated Crowley.

The following are some of the highlights from the ACB member survey conducted between January 26 and February 5.

-- Of the 181 respondents, more than 96 percent said they issued debit cards, while 19 percent said they issued credit cards. -- In the past 24 months, 70 percent of respondents said their bank had to reissue cards due to data breaches three times or more and 39% said their bank had to reissue cards more than five times. -- Eighty-nine percent of the debit card issuers and 53 percent of the credit card issuers indicated that their customers had been affected by a data breach. -- Of those affected by a data breach, 92 percent had reissued cards to customers.

While not specifically asked in the survey, cumulative data reflect that the average cost for reissuing each debit card is approximately $10-20 per card. Therefore, a bank reissuing 10,000 cards three times at an average cost of $15 per card would incur a cost of $450,000.

This survey underscores that retailers are failing to provide an appropriate level of data security, exposing consumers to serious risk of identity theft, and imposing significant operational and reputational costs on community banks serving those customers.

In recent letters to VISA and MasterCard ACB recommended that both companies upgrade their merchant compliance program by increasing fines for violators; publish the names of merchants not in compliance; and remove merchants that are consistently out of compliance.

ACB is working with members of Congress to require timely public disclosure of essential information when a breach occurs, and require a reimbursement mechanism so that those responsible for the breach bear the cost of fixing it and protecting the public.

America's Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit http://www.americascommunitybankers.com/.

America's Community Bankers

CONTACT: Robert Schmermund of America's Community Bankers,
+1-202-857-3104, Home: +1-301-858-0922

Web site: http://www.americascommunitybankers.com/

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Microservices Articles
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addresse...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...