The National Association of Federal Credit Unions and Independent Community Bankers of America called on Congress on Tuesday to implement data security standards for retailers amid news of recent breaches at major retailers like Target and Neiman Marcus.
“Though our policy interests sometimes diverge, when it comes to the financial integrity of our customers and members our concerns are completely aligned,” the ICBA and NAFCU said in a letter to Congress. “Strong legislation is needed to restore confidence in our payments system which is critical to sustaining consumers spending and the economic recovery.”
NAFCU and ICBA said standards similar to those under theGramm-Leach-Bliley Act should be applicable to all entities that store financial data and that the party responsible for the data breach should be liable for all costs and losses.
Additionally, the groups called on Congress to develop a federal standard to “strengthen data protection by promoting compliance and consumer understanding,” pointing to the current system of numerous state laws applicable to data breaches.
“While card technology is continuing to evolve, so are the criminals that pursue personal financial data,” the letter, signed by NAFCU President and CEO Dan Berger and ICBA President and CEO Camden Fine, said. “The best way to truly help protect consumers financial information is to enact comprehensive national data security standards that stand up no matter what the technology.”