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CU Leader Testifies to Financial Services Committee on Data Security
Thursday, February 15, 2018 6:50 AM

Credit Union National Association witness Kim Sponem, president/CEO of Summit Credit Union in Madison, Wis., delivered oral testimony at yesterday’s hearing in the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, titled “Examining the Current Data Security and Breach Notification Regulatory Regime.” 

“Financial institutions, like Summit Credit Union, foot the bill for the fallout and subsequent fraud that comes from the breach of personal information from merchants and other companies’ failure to adequately protect and secure customer information,” Sponem said. “The current state of the law does not put enough responsibility on those handing this sensitive customer information to properly safeguarding it. Any future legislation must address this lack of responsibility and accountability.”

Sponem described how Summit gets lists of payment cards each year that have been reported as compromised because of a data breach. Staff then dedicates time to review all card numbers, determine if the card should be blocked and reissued and if it should be tagged for additional fraud monitoring.

Sponem asked that any legislation proposed include these three priorities: 

  • One – A standard for all companies holding personal information; 
  • Two – A requirement to communicate breaches in a timely manner; and 
  • Three – A responsibility for negligent companies to bear the cost.

Read Sponem's full testimony.