NAFCU applauds introduction of Carper-Blunt Data Security Bill, S. 1927
WASHINGTON (January 16, 2014) — National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger hailed the introduction today of S. 1927, the “Data Security Act of 2014,” by Sens. Tom Carper, D-Del., and Roy Blunt, R-Mo., to expand breach notification requirements to all U.S. businesses without imposing new requirements on financial institutions – like credit unions – subject to Gramm-Leach-Bliley Act data protection measures.
“We thank Sens. Tom Carper and Roy Blunt for their leadership in introducing this important legislation, which addresses our concerns about the lack of minimum data security measures at retailers,” said Berger. “We look forward to working with lawmakers to advance S. 1927.”
Like similar legislation the senators proposed in 2012, the new bill is expected to provide a GLB Act carve-out – a measure that NAFCU deems essential in any new data security package. Breached entities would be responsible for investigating the scope of the breach and reporting the findings to appropriate agencies.
This and related efforts are picking up in the wake of the Target Corporation data breach. Target has now said its breach potentially affects up to 110 million consumers.
Berger on Monday wrote letters to House and Senate leaders to reiterate the association’s call for action on merchant data breaches.
Currently, credit unions pay the costs of cancelling and reissuing payment cards and helping members address potential account and identity theft following a merchant breach. “Any entity that stores financial or personally identifiable information should be held to minimum standards for protecting such data,” Berger wrote.
Numerous congressional committees are looking at this issue and considering action. Among these panels are House Oversight and Government Reform, House Financial Services, House Energy and Commerce, Senate Commerce, Senate Banking and Senate Judiciary. NAFCU has reached out to each in its efforts to win action that would make merchants accountable for breaches on their end.
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.