National Data Security Bill Now Looking Doubtful
WASHINGTON-Legislation to protect credit unions and their members from data security breaches has been put on the back burner by Congress and its future left in doubt, key lawmakers said this week.
House Financial Services Committee Chariman Barney Frank said after speaking to NAFCU's Congressional Caucus he has backed off the issue somewhat as other priorities have emerged and consensus has become elusive on a data security measure.
Frank, who had hoped to introduce his own version of a data security bill this fall, said it won't take place until next year.
Several other committees in both the House and Senate have competing versions of a data security bill and there is no clear consensus in Congress on how to deal with the growing threat of data security and identity theft. But the Massachusetts Democrat said he has been swayed by credit unions in his home state who are lobbying to bring more accountability at the point of data breaches.
Frank said he was convinced by HarborOne CEO Jim Blake, whose credit union has paid hundreds of thousands of dollars to notify members of third-party breaches and to block and reissue cards.
As a result, Frank said he supports measures to require parties that cause a breach to notify all of its customers, including credit unions, banks and consumers, and to pay the costs to resolve the events, including notification of members by credit unions, and to reissue cards. "We're going to put the burden on the people who made the mistake, if we do a data bill," he said.
NCUA Approves CU Mega-Merger
ALEXANDRIA, Va.-NCUA has approved the merger of Western FCU with Toyota FCU, one of the largest credit union combinations in several years.
The deal will give the $1.2-billion Western Federal Credit Union entry into the $265 million Toyota Federal Credit Union's national field of membership, the thousands of employees and their family members working at Toyota plants across the country.
Western FCU plans to add branches outside the Toyota plants, many of which have branches inside that only are accessible by Toyota employees. The merger is expected to be completed by year-end.
Suspect Shot After Carjacking
SEFFNER, Fla.-Deputies shot and wounded a man they suspect of carjacking a women, then using her and her car to rob a Suncoast Schools FCU branch last night.
The suspect allegedly accosted the woman in a supermarket parking lot and shoved her and her young son into the car.
He then drove to the nearby credit union branch and told the drive-thru teller he had a bomb and demanded money, before driving off with an undisclosed amount of cash.
A few blocks later the suspect agreed to pull over and let the son out, at which point both mother and son dove from the moving vehicle and made their escape.
Later, police arrested the suspect and brought him in for questioning.
When he tried to wrestle a deputy's gun away he was shot twice. The injuries were not believed to be life threatening.
The suspect, identified as Tracey Alderman, 29, was charged with robbery, threat of destructive force, carjacking, and two counts of kidnapping.
FIS Completes eFunds Deal
JACKSONVILLE, Fla.-Fidelity National Information Services said it has completed the $1.8-billion acquisition of eFunds Corp., the processor of transactions over the credit union-owned CO-OP Financial Services network.
"eFunds is an excellent fit for our company, and further strengthens our competitive positions in electronic processing and risk management services," said William Foley, executive chairman of FIS, in a statement. In April, eFunds signed a multi-year contract extension to process EFT transactions for the CO-OP network.
Corrections & Clarifications
A story and a headline in the Sept. 10 edition of CU Journal erroneously used the word "bankrupt" in reference to Norlarco CU, New Horizons Community CU and Huron River CU, which have been taken into regulatory conservatorship.
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