The Independent Community Bankers of America (ICBA) on Thursday said that U.S. community banks reissued nearly 7.5 million credit and debit cards at a total cost of more than $90 million, because of the Home Depot data breach, which occurred from April through September 2014.
The ICBA said its numbers are based on its survey of community banks. The trade group’s survey also found that more than four percent of community banks reported fraud on these accounts.
“Community banks continue to absorb exorbitant costs due to data breaches, and they do so upfront because their primary concern is to protect their customers,” John Buhrmaster, ICBA chairman and president and CEO of 1st National Bank of Scotia, located near Schenectady, said in an ICBA news release. “However, this is money … that could be used for lending in our communities, in the form of loans to new homeowners, small business owners and budding entrepreneurs — all of which spur local economic stability and growth.”
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Buhrmaster and the ICBA say they’re continuing to “advocate that the costs associated with data breaches be borne by the party that experiences the breach. Communities and customers should not suffer for the faults of retailers.”
The ICBA said in its release that it wants all participants in the U.S. payment system, including merchants, to be subject to the same data-security standards that banks are under federal banking law.
The group said it also seeks a national data-security breach and notification standard to replace the “current patchwork of state laws.”
More information on ICBA’s efforts and data-security resources for community banks and their customers are available on ICBA’s online security breach toolkit.
The ICBA says it represents more than 6,500 community banks of all sizes and charter types.
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