The Impact of Data Breaches and Apple Pay

TECHNICALLY SPEAKING : BY WILLIAM NICOLOSA

Data breaches and Apple Pay continue to be among the hot topics in the credit union industry. Read on to learn more about the ramifications these timely cyber security and mobile payment issues are bringing to bear on CUs and what your credit union may want to do about them.

Data Breaches Hitting Credit Unions Hard

Data breaches at retailers such as Target, Home Depot, Staples and other retailers have had a devastating effect on credit unions’ member services, said Credit Union National Association President and CEO Jim Nussle.

Nussle said that credit unions must pick up the initial cost of securing customers’ privacy after breaches occur. He added, “We have to pay first and then wait to see how we’re going to get reimbursed. This needs to change for small organizations like credit unions and for community banks, too.” Nussle explained that one credit union had to reissue cards three times last year.