The recent security breaches at Target, Neiman Marcus and others have affected tens of millions of American consumers and shaken the nation’s payments system. Due to the magnitude of the breaches, they have touched community banks in every corner of the United States and will continue to have repercussions in the weeks, months and even years ahead.
Your dedicated staff at ICBA listened intently and received calls from you personally, and we understand the anxiety and frustration many of you feel about the breaches and what they mean for you and your customers. Trust me, we feel your pain, as our own ICBA Bancard and ICBA TCM Bank have been affected as well. This is our reality, too. We are all community bankers, and the security breaches affect all of us.
The numbers alone tell the tale. Based on the latest disclosures from Target, its breach has compromised 40 million debit and credit card accounts and the personal data of 70 million consumers. There is no question that this will have a far-reaching negative impact on our customers.
ICBA is working to help community banks respond to customers victimized by the Target breach, and we are also tracking the just-released news of a breach at Neiman Marcus and potentially other retailers. And we are reviewing all of our options to help community banks, including via legislation, regulation and litigation. Make no mistake, ICBA is committed to each of you, and this association’s resources are dedicated to keeping your community bank franchise out of harm’s way.
As part of that commitment, ICBA has released a comprehensive toolkit to help community bankers deal with this travesty. The ICBA Toolkit on Maintaining Consumer Confidence During a Data Security Breach provides the resources community bankers need to respond to these security breaches and to defend against future criminal acts. The toolkit includes an ICBA paper, “Key Considerations for Community Banks Facing Payment Card Compromises,” that helps community bankers address key issues in the aftermath of a breach and communicate with customers and the media.
In addition, ICBA teamed up with Visa to provide community bankers with some general guidance on data breaches. These additional tools include:
a security breach guide,
general notifications for check cards and credit cards,
a press statement, and
a security statement insert.
Further, ICBA is hosting a town hall audio conference this week on the security breaches and on what community banks need to know and can do to help their customers. The audio conference, scheduled for 1 p.m. (Eastern time) this Wednesday, is open to all ICBA members and nonmembers and will provide up-to-the-minute information and the opportunity for peers to share their experiences.
While we hope these resources will be valuable to community banks affected by these and future security breaches, ICBA will continue to monitor the situation and seek out information while investigators develop complete forensics reports.
ICBA will continue to provide factual information and useful resources to help our industry cope with these security breaches. ICBA will continue to provide updated resources via the online toolkit and audio conference and its daily news coverage to ensure you have the very latest on these attacks and on how together we can respond.