NCUA to Pay Up to $50,000 for Cost Related to Examiner Induced Data Breach

The National Credit Union Administration (NCUA) Board has approved payment of up to $50,000 for costs associated with a data breach arising from an examiner losing a thumb drive during an examination of Palm Springs Federal Credit Union (Palm Springs, California).

NCUA will pay the credit union for activities such as credit report monitoring for members, credit union staff time associated with the breach and legal fees. To date, the related costs associated with the data breach are approximately $36,000. Payments will come from NCUA’s existing operating funds. In the event costs ultimately exceed $50,000, subsequent Board action would be required.

NCUA noted that the examiner failed to follow longstanding agency policies on securing sensitive data.

Read the press release.