NAFCU June Economic & CU Monitor on data security
WASHINGTON, DC (June 26, 2017) — Good afternoon,
Attached is NAFCU’s June Economic & CU Monitor, which includes an “Industry and Economic Briefing” overview from NAFCU Chief Economist and Director of Research Curt Long. The June Monitor features an in-depth look at data security. Highlights follow below.
Industry and Economic Briefing
- The first quarter data for credit unions showed that growth remains strong. Member growth topped 4 percent and loan growth was over 10 percent.
- Meanwhile, the housing market has been performing well due to a badly needed influx of supply, while auto sales growth continues to downshift.
Special Topic – Data Security
- Respondents noted that they were alerted about a possible breach in their member’s financial data an average of 189 times in 2016 – an increase over 2015 alerts for most respondents.
- As far as data security concerns, the Monitor survey results show that on average respondents estimate that merchant data breaches in 2016 cost each credit union approximately $362,000 in direct and indirect costs, including those expenses related to monitoring, reissuance, fraud investigation or losses, and insurance.
- Credit union respondents also reported additional costs or impacts, such as increased customer service activity (83.3 percent) and reputational harm (55.6 percent).
- Despite the fact that roughly 81.1 percent of debit cards and 98.2 percent of credit cards are now EMV-chip enabled, only 16 percent of respondents said they have noticed the incidence of fraud lessened since this standard went into effect. In fact, 91.7 percent of respondents to this survey reported increased costs related to data and cybersecurity over the last three years.
- This month’s Monitor report, also features the association’s first Credit Union Sentiment Index.
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National Association of Federally-Insured Credit Unions
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The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.