ARLINGTON, Va. Credit unions are saying that 13.9% of their cards were impacted by breaches in 2013, according to a recent survey.
NAFCU polled credit unions about the impact of data breaches in its latest Economic & CU Monitor. Among survey respondents that have an average of 10,300 debit and credit card accounts representing about 13.9% of a CU's total card accounts were compromised last year.
"The survey findings are staggering," NAFCU Chief Economist David Carrier said. "Credit unions are being hit by a double whammy in terms of numbers of possible data breaches and costs while they continue to pick up the tab for retailers who are not subject to the same high level of data security standards."
Carrier added that it is "ironic" that despite ample rules in place to ensure data protection standards at financial institutions, "merchants and retailers are not held accountable for data breaches. Cybercriminals will continue to capitalize on this double standard and wreak havoc with consumers and our economy."
The massive Target Corp. breach, the Monitor also showed, cost CUs on average $45,000, while the total cost for all credit unions is estimated to be as much as $30 million, according to NAFCU. Survey respondents also said they were alerted to possible data breaches, on average, 263 times in 2013, and that the average amount they spent on security measures was $158,600.
In January, CUNA reported that the cost to credit unions from the Target breach could be $25 to $30 million, if not higher.