RALEIGH, N.C. - (03/13/06) Credit unions and banksstricken by the spreading credit card breach are all being facedwith the same dilemma: whether to cancel cards by the hundreds, oreven thousands, then reissue them as an out-of-pocket expense.State Employees CU in North Carolinas policy is to canceland reissue all cards that may have been breached, even if therehas been no fraud on the account, according to Jim Blaine,president of the $13 billion credit union. That means thenations second largest credit union paid roughly $500,000 toreissue more than 100,000 cards over the past year, as insurancecovers only the small number of accounts that were actuallypenetrated by fraud. Some SECU members have had their cardsreissued two or three times in the last year. As a prudentfinancial institution, we take the precautions, Blaine toldThe Credit Union Journal, of the more than 27,000 Visa debit cardsSECU replaced over the past two weeks because of the latest fraudalert. Authorities say as many as 100 credit unions and banks haverecalled more than one million Visa debit cards over the past twoweeksthe biggest mass recall ever of cards--after the cardcompany notified them the listed accounts may have been breached.Credit union and bank issuers are grappling with how to minimizethe costs. Some institutions, like SECU, are automaticallyreissuing new cards, at great expense. Others are asking customersto review their records for suspicious transactions and onlycancelling those cards. Others, still, are blocking alltransactions or just selected transactions from high-risk countriesand cities.
-
The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
3h ago -
The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
3h ago -
At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
4h ago -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
5h ago -
The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
6h ago -
Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
7h ago