Home Depot Breach Cost Northwest Credit Unions $3.2 Million: CUNA
October 29, 2014
October 30, 2014
In a new report released Thursday, CUNA estimated that the massive breach of credit card data at Home Depot has cost Northwest credit unions over $3.2 million. Nationally, they estimated the costs to credit unions near $60 million.
CUNA estimates that 7.2 million credit union debit and credit cards were affected nationally, at an average cost of $8.02 per card. This cost estimate is substantially higher than the estimated costs of last year’s Target breach. CUNA said that more credit union cards were affected by the Home Depot breach, and the cost-per-card was higher as well.
Below are some key numbers from the CUNA report.
- Debit cards affected: 105,196
- Credit cards affected: 18,510
- Total cost to credit unions: $992,120
- Debit cards affected: 235,456
- Credit cards affected: 49,757
- Total cost to credit unions: $2,287,415
- Debit cards affected: 6,041,760
- Credit cards affected: 1,119,532
- Total cost to credit unions: $57,433,563
These numbers include the costs of reissuing compromised cards, fraud, extra staffing, and other costs.
“The cost to credit unions of data breaches – which seem to be occurring with increasing regularity – is rising, as the CUNA surveys clearly demonstrate,” said CUNA President and CEO Jim Nussle. “The bottom line is that credit union members end up paying the costs – despite the fact that the credit unions they own had nothing to do with causing the breach in the first place.
“Congress has a role to play in addressing the issue of merchant data breaches by making sure all of the participants are playing by the same set of data security rules, and that merchants who hold consumer data and allow that data to be breached, are responsible for the costs incurred by others.
“Congress must act to protect consumers by taking steps to enhance data security standards for merchants,” Nussle said.
In a joint letter, CUNA and NAFCU called on retail trade groups to commit to the same high security standards that credit unions are held to.
CUNA surveyed credit unions nationally, and these numbers are based on a survey size of 835 responding credit unions, of which 544 offered good data on their losses. These respondents have 20.1 million credit and debit cards outstanding, which represents 29% of the total number of outstanding cards for credit unions nationally.
Home Depot said that hackers obtained 56 million credit card numbers in the breach, which was first confirmed on September 8 of this year. Any customer who used a credit or debit card in a Home Depot store from April to September of 2014 is at risk.
Questions about this story? Contact James Pearson: 206.340.4790, firstname.lastname@example.org.
Posted in CUNA.