Cyber Security

CBA: Target data breach costs member banks $153 million

Cyber SecurityThe Consumer Bankers Association said on Tuesday the Target data breach has cost its member banks more than $153 million for the reissuance of more than 15.3 million debit and credit cards.

Target announced in December that cyberattackers had accessed customers’ payment card data. The company initially said the intrusion may have only affected 40 million shoppers, though the estimate has since been revised to 70 million.

In addition to card reissuance, the CBA said its member banks have added extra fraud rules on accounts, enhanced transaction monitoring and extended call center operations to handle customer inquiries.

“CBA member banks take data protection very seriously and have acted swiftly in this matter,” CBA President and CEO Richard Hunt said. “Now is the time for Target to step up to the plate and pay the cost where they bear the responsibility.”

The CBA said, according to data collected from its member banks, the average cost to replace a debit or credit card includes not just the card itself but disclosures, shipping and activation—an average cost of $10 per card.

“Banks have proactively replaced millions of customers’ cards and allocated significant resources to correct a problem that, by all appearances, was not of their making,” Hunt said. “This comes at no small cost, and Target needs to take the financial responsibility where they are to blame.”

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