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CUNA Asks Obama to Establish Cybersecurity Council
Wednesday, October 1, 2014 6:35 AM

Yesterday, Credit Union National Association's new President/CEO Jim Nussle asked the Obama administration to establish a Cybersecurity Council that would be charged with "developing a comprehensive and timely approach to the range of issues associated with cybersecurity attacks on businesses and consumers in this country."

Nussle urged the president to give this idea his full consideration and to coordinate with Congress, agencies that are already addressing aspects of cybersecurity (including prudential regulators), and the private sector to establish it.

Nussle noted that most recent massive data breaches have taken place in systems operated by merchants, not financial institutions, and that one job of the Cybersecurity Council should be to help align liability with responsibility for these breaches. Such a system, Nussle wrote, would give more incentives to all parties to take cybersecurity seriously.

"One important problem with current law," Nussle said, "is that even when fault in a data breach lies with a merchant, credit unions and financial institutions are assigned many of the financial costs."

Nussle detailed another key credit union concern related to merchant data breaches: "When credit unions reissue compromised cards, under current rules they are not permitted to reveal the reason for the reissuance, leaving the impression among many credit union members that it was the credit union that allowed the data to be compromised."