NORTHAMPTON, Mass. (WWLP) – A new survey found the Target breach is costing small banks millions of dollars. A Bankrate survey says last year’s Target breach is costing non-profit institutions up to $30 million.
That figure doesn’t include fraudulent activity. All of this follows last Novembers massive data breach at Target. The chain announced its system was hacked and the sensitive customer information of more than 100 million people was at risk. 936 credit unions participated in the survey. 98% reported to having already re-issued cards to its customers. UMass Five College Credit Union’s Jon Reske says for co-operative institutions that money comes from its members.
“The majority of that cost is the actual cost of making new plastic cards and re-issuing those cards. The time, the staff of those credit unions and community banks are spending on the call volume that has gone up,” John Reske, VP of Marketing at UMass Five College Credit Union
Reske says financial institutions are responsible for reimbursing the customer in the event of fraud.
He says legislation is being proposed to make retailers also responsible in preventing massive breaches.