NAFCU Explores Costs Of Data Security Breaches To CUs In Its Recent Survey
ARLINGTON, Va. -
In its January Flash Report, NAFCU surveyed credit unions to get a feel for how many CUs are experiencing these breaches and what they have meant in terms of costs.
In addition to the survey results found charted at left, other findings of the report include:
* Twenty-seven percent of responding CUs reported they experienced some form of a security breach in 2005 or 2006, with most via merchants and processors.
* For those experiencing a breach, there was roughly one breach per 2,800 members in 2005, or about 0.04% of the membership affected, declining to one breach per 3,200 members, or 0.03% of the membership in 2006.
* Average costs associated with breaches, 86% of CUs experiencing breaches reissuing credit, debit and/or ATM cards as a result.
* The average cost to replace a member's credit card was $6.40 in 2005, increasing to nearly $6.60 in 2006, while the average cost to replace a member's debit card in 2005 was $420, rising to $579 in 2006.
* Forty-six percent of CUs indicating they experienced one or more breaches in 2005 or 2005 reported that losses associated with the breaches were covered by an insurance policy.
NAFCU regularly issues Flash Reports covering a wide variety of topics, including economic updates and forecasts. For info: www.nafcu.org.