Bank and CU Trade Groups Refute Misleading Claims by Retailers

Trade groups representing banks and credit unions yesterday wrote to Congress to rebut “inaccurate and misleading” arguments from retailers for a uniform federal law governing data breach notification.

“Financial institutions have developed and maintain robust internal protections to combat criminal attacks and are required by federal law and regulation to protect this information and notify consumers when a breach occurs that will put them at risk,” the financial groups wrote. “In contrast, retailers are not covered by any federal laws or regulations that require them to protect the data and notify consumers when it is breached.”

The letter described to congressional leaders the strong data security structure employed by banks and credit unions, noting that retailers do not have similar internal safeguards or external oversight. “It is only when coupled with the development of strong internal data protection standards and robust oversight that the retail community will find itself in a better position to protect consumers and their confidential personal financial information from criminal abuse,” the groups wrote.

Read the letter.