The Credit Union National Association (CUNA) issued a statement that they would be joining as a plaintiff in the class action lawsuit against The Home Depot after the data breach that occurred in 2014.
Jim Nussle, President and CEO of CUNA stated, "Credit union members need a solution to the problem of merchant data breaches." Yet again, credit unions refused to acknowledge the very clear solution to data breaches, Chip-and-PIN technology. In fact, a 2013 study by the Federal Reserve found that using PINs in debit card transactions reduced fraud by 700 percent.
Credit unions are deliberately deceptive when it comes to data breaches, placing blame on retailers when in fact they refuse to invest in Chip-and-PIN technology, making the card payment ecosystem a tempting target for attacks. Despite a willingness to protect cardholders in Europe and Canada with this technology, financial institutions have thus far refused to implement the same security measures in the United States that we all know would reduce fraud and breaches dramatically.
Retailers are the ones investing in an infrastructure for a safer payment ecosystem, and are willing to make the investment for Chip-and-PIN technology, so why won't the financial industry? Well, Anre Williams, president of global merchant services at American Express, cited cost and complexity as reasons for not issuing PIN numbers, which would require a much larger investment by card issuers.
Of course it is easy for CUNA and the financial industry to place blame on merchants for data breaches, when really they are the ones to blame for not investing in the latest technology to protect consumers against fraud.
Including A PIN Can Make A Transaction Up To 700 Percent More Secure. A 2013 study by the Federal Reserve found that using PINs in debit card transactions reduced fraud by 700 percent. ("2011 Interchange Fee Revenue, Covered Issuer Costs, And Covered Issuer And Merchant Fraud Losses Related To Debit Card Transactions," Federal Reserve, 3/5/13)
RILA is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.