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NCUA Board Approves Coverage of Costs Associated with CU Data Breach
Thursday, January 22, 2015 6:40 AM

The National Credit Union Administration Board has approved payment of up to $50,000 for costs associated with a data breach at Palm Springs Federal Credit Union of Palm Springs, California.

NCUA said it will pay the credit union for activities such as credit report monitoring for members, credit union staff time associated with the breach, and legal fees. To date, the related costs associated with the data breach are approximately $36,000. Payments will come from NCUA’s existing operating funds. In the event costs ultimately exceed $50,000, subsequent Board action would be required.

As a result of a failure to follow longstanding agency policies on securing sensitive data, a thumb drive given to an examiner was lost during an examination of Palm Springs Federal Credit Union. The thumb drive did not include passwords or PINs. NCUA has received no indication of any unauthorized access to members’ accounts or attempts to gain improper access.

The agency also said it is taking appropriate action with staff involved in the incident and is reinforcing training on protecting sensitive information and reviewing regulations, policies and procedures in this area. NCUA is also moving as quickly as possible to consider and adopt additional safeguards to protect electronic data.