Security Experts:

Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Cybercrime

Target Breach Has Cost Credit Unions Nearly $30 Million: Association

According to a preliminary report from the Credit Union National Association (CUNA), credit unions across the nation have so far incurred nearly $30 million in costs as a result of the massive data breach that hit Target Corp. between late November and mid-December.

According to a preliminary report from the Credit Union National Association (CUNA), credit unions across the nation have so far incurred nearly $30 million in costs as a result of the massive data breach that hit Target Corp. between late November and mid-December.

The California and Nevada Credit Union Leagues, which represents more than 400 credit unions in California and Nevada, said that the CUNA survey asked credit unions impacted by the Target data breach to outline the costs and burdens they have seen as a result.

According to the survey, more than 530,000 debit and credit card accounts at California credit unions alone were affected by the breach, representing an estimated $2.7 million in card reissuance and other costs.

The average replacement cost per card is $5.10, the association said.

Those costs likely don’t include potential fraud losses, which could be substantial, CUNA’s survey-result analysis states.

“The impact of this breach—both on consumers and financial institutions, including credit unions — is astonishing,” said Diana Dykstra, president and CEO of the California Credit Union League. “This reinforces the need for national legislation. As it stands now, financial institutions are left holding the bag every time a retailer leaves itself open to a security breach.”

“Credit unions continue to seek solutions to the merchant data breach problem,” a statement from the California and Nevada Credit Union Leagues said. “Credit unions are advocating for increased security at the retail level, more consumer notification as to where and how their information was breached, and reimbursement from the merchant for the breach to the financial institution — providing equity for the mutual cost of protecting consumers’ financial data.”

Earlier this month, Target said it had not yet been able estimate the costs, or a range of costs, related to the data breach. However, the company said expenses related to the massive breach may include liabilities to payment card networks for reimbursements of credit card fraud and card reissuance costs, liabilities related to REDcard fraud and card re-issuance, liabilities from civil litigation, governmental investigations and enforcement proceedings, expenses for legal, investigative and consulting fees, and incremental expenses and capital investments for remediation activities.

“These costs may have a material adverse effect on Target’s results of operations in fourth quarter 2013 and/or future periods,” the company said.

Related: Nieman Marcus: Hackers Stole Details of 1.1 Million Customer Credit Cards

Related AnalysisHow Cybercriminals Attacked Target

Written By

For more than 10 years, Mike Lennon has been closely monitoring the threat landscape and analyzing trends in the National Security and enterprise cybersecurity space. In his role at SecurityWeek, he oversees the editorial direction of the publication and is the Director of several leading security industry conferences around the world.

Click to comment

Expert Insights

Related Content

Cybercrime

Zendesk is informing customers about a data breach that started with an SMS phishing campaign targeting the company’s employees.

Cybercrime

The release of OpenAI’s ChatGPT in late 2022 has demonstrated the potential of AI for both good and bad.

Cybercrime

A new study by McAfee and the Center for Strategic and International Studies (CSIS) named a staggering figure as the true annual cost of...

Cybercrime

The FBI dismantled the network of the prolific Hive ransomware gang and seized infrastructure in Los Angeles that was used for the operation.

Ransomware

US government reminds the public that a reward of up to $10 million is offered for information on cybercriminals, including members of the Hive...

Ransomware

The Hive ransomware website has been seized as part of an operation that involved law enforcement in 10 countries.

Cybercrime

Video games developer Riot Games says source code was stolen from its development environment in a ransomware attack

Cybercrime

CISA, NSA, and MS-ISAC issued an alert on the malicious use of RMM software to steal money from bank accounts.