Data Breaches Spur More CUs To ShedCards

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MINNEAPOLIS, Minn. - (05/15/06) – Losses and liability connectedwith the onslaught of data breaches the past two years haveprompted increasing numbers of credit unions to sell of theircredit card portfolios, according to Elan Financial Services, whichhas been buying up dozens of those portfolios. Credit unionexecutives cite vulnerability to identity theft, particularly debitcard fraud, as key areas of concern, according the wholly ownedsubsidiary of U.S. Bancorp, which has acquired more than 70 creditunion portfolios over the past six months. Security breaches alongwith the new bankruptcy law and higher interest rates are keyreasons why a record number of credit unions have put their cardprograms up for sale, according to Dan Roads, vice president ofElan Financial.

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