If approved in federal court, the settlement would earmark $20 million for the credit unions and other financial institutions that joined the class action suit.
The decision allows credit unions and other financial institutions to coordinate use of attorneys, collection of evidence, requests of witnesses, and more.
This Thursday, August 27, Northwest credit unions are invited to join a conference call addressing the settlement between Visa and Target over Target’s 2013 data breach, and the litigation that remains pending.
Target has agreed to reimburse Visa card issuers up to $67 million for costs associated with their massive 2013 data breach.
Umpqua Bank Files Class Action Lawsuit Against Target; Survey Asks Whether Retailer Should be Held Liable for Losses Incurred by Credit Unions and Banks
A new Portland Business Journal survey asks readers to weigh in on who should bear the financial responsibility for data-breach losses at Target and other retailers. The poll comes on the heels of a class action lawsuit filed by Umpqua Bank against the nationwide chain.
Updated estimates from the Credit Union National Association now put the cost of responding to the Target data breach at $1.7 million for Northwest credit unions as the average cost per affected card continues to rise. Credit unions’ cost to date nationwide: $30.6 million.
Credit unions that respond to two online surveys can help the Northwest Credit Union Association build a strong case for legislative action in the wake of national and regional data breaches that compromised the financial information of millions of consumers.
Consumers still reeling from a massive data breach at Target stores and the theft of financial information from luxury department store Neiman Marcus got more bad news this week: Michaels Stores Inc, the nation’s largest arts-and-crafts retailer, now says that it, too, is investigating fraud on cards used at its outlets across the country.
Northwest credit unions have already spent an estimated $1.3 million responding to the massive theft of financial data from Target stores, and the preliminary results of a nationwide survey indicate that those costs could grow substantially if fraud losses mount.
When news broke about the theft of Target customers’ credit and debit card accounts, Gesa Credit Union quickly told its members about Real-Time Mobile Alerts from VISA, which allows cardholders to set thresholds that trigger an immediate transaction alert via text message, email or push notification to a mobile device. If the transaction appears to be irregular, members can immediately contact Gesa to help stop further transactions on the card.
Target now says that the personal information of more than 70 million customers was compromised at its stores during the busy holiday season, making the data breach one of the biggest thefts of its kind in U.S. history.
CUNA posted an online survey today to collect information about the costs incurred by credit unions in response to the massive data breach at Target stores nationwide; Alabama State Employees Credit Union files class-action lawsuit; Target warns consumers about phishing emails.
CUNA and the Northwest Credit Union Association are asking credit unions to keep detailed records of the costs they’re incurring in response to the recent data breach at Target stores nationwide as both organizations continue to demand that merchants be held accountable for more than just the damage to their own reputations.
Financial institutions and consumers are reeling this morning from news of a massive data breach at Target stores nationwide that could affect as many as 40 million credit and debit card accounts, making it potentially one of the largest retail breaches in U.S. history.
The CFPB announced recently that it plans to “combat unlawful, discriminatory practices—including those that have an illegal disparate impact on protected borrowers,” an area that will also be a focus during this year’s DFI, DCBS and NCUA exams.