Skip to main content

maybe-they-will-pay-it-with-a-credit-card

Posted by: admin 15 years, 12 months ago

A credit union has sent TJX a expenses related to the breach at TJX. Interestingly, $500k is for "brand damage":

"The bill was for both direct operational costs that we incurred reissuing new debit cards to our customers, as well as the costs to us from a reputational standpoint," he said. According to Blake, the TJX breach resulted in HarborOne having to block and reissue about 9,000 cards at a cost of around $90,000. The remaining $500,000 is what Blake believes the breach cost the credit union in terms of brand damage.
And it looks like more states are pursuing regulations requiring retailers to take responsibility for data breaches.
HarborOne's action comes amid growing pressure from credit unions and other financial institutions around the country to get retailers to take financial responsibility for data compromises. Credit union associations in various states are vigorously lobbying lawmakers to approve bills that would require retailers to implement stronger data-security measures and to reimburse costs associated with reissuing payment cards after a breach.

One such bill is the Plastic Card Security Act that was signed into law in Minnesota last month after being actively pushed by the Minnesota Credit Union Network. And the California Credit Union League is now pushing a bill similar to the one in Minnesota. Other states, including Texas and Connecticut, have considered similar proposals recently.
Will the PCI data security requirements be too little too late?

Current rating: 1

Recent Posts

Archive

2024
2022
2021
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008

Categories

Tags

Authors

Feeds

RSS / Atom