Credit Union National Association (CUNA) recently released a new survey of 835 credit unions that revealed the Home Depot data breach cost credit unions across the country about $60 million.
The study reported that 7.2 million credit union debit and credit cards were compromised in the breach, and that the cost for each of these cards was $8.02. These costs included fees for reissuing the cards, covering the fraud and managing other tasks such as hiring extra staff, offering free account monitoring and thoroughly notifying affected customers of the situation.
The credit unions involved in the CUNA survey reported having replaced 20.1 million cards.
"Anecdotally, every credit union CEO I've talked to from the relatively medium-sized ones to the large ones all seem to have been impacted by the Home Depot breach in some way," said Patrick Harris, director of legislative affairs for the Ohio Credit Union League in Columbus, to the local publication The Blade.
CUNA also conducted a similar survey of credit unions in January, after the infamous Christmas Target breach. In that case, unions lost nearly $30 million, for which they have not yet been reimbursed.
The legal fees and public relations struggles that arrive in the inevitable aftermath of a breach are a nightmare for consumers, unions and companies, and consumers are becoming frustrated and nervous about their financial stability and the power of a retailer to protect their identities.
There's no doubt about it, data breaches are costly in more ways than one. As the holiday season approaches, put new payment processing software at the top of your wish list. Consumers will feel safe knowing that their businesses care about the security of individuals.