In 2013, there were 614 data breaches that led to more than 550 million identities compromised. New data breaches means more identity theft and other fraud, and more consumers facing financial loss, great inconvenience, and a loss of trust in the marketplace. That is why NCL is launching our new #DataInsecurity Project -- to raise awareness about the need for reforms aimed at better protecting consumer data.
Data breaches impact consumers, credit unions, banks, and retailers. Last December, the retail giant Target suffered a massive data breach that made national headlines. In the breach, as many as 110 million identities were compromised.
Take a look at the impact of just this single incident:
- $200 million: the cost to credit unions and community banks for reissuing 21.8 million credit and debit cards
- 1-3 million: the estimated number of cards stolen in the Target breach that were sold on the black market and successfully used to commit fraud
- $18-35.70: the price per card stolen from Target and resold on the black market in the months after the breach
Shocking as these numbers are, they represent the fallout from just a single data breach. Data breaches are happening with frightening regularity.
Malicious hackers are going to continue to exploit existing weaknesses, and many businesses lack the incentive or ability to adequately protect their customer data against evolving threats. That is why NCL believes that consumers need to be proactive about protecting their own data and calling on policymakers for improvements.
The current landscape of protection for consumer data is woefully inadequate.
NCL’s #DataInsecurity Project is calling for reforms such as:
- Creating a national data breach notification standard, modeled on strong state protections such as California’s;
- Requiring businesses that maintain consumers’ personal data to protect that information via specific data security requirements;
- Giving the Federal Trade Commission and state Attorneys General civil penalty authority to enforce violations of data security requirements;
- Increasing civil and criminal penalties for malicious hacking;
- Increasing efforts to enhance cooperation with international partners to bring overseas hackers to justice; and
- Requiring retailers and banks to implement the highest level of security available to protect consumers’ payment data.
To promote these goals, NCL is taking its #DataInsecurity Project on the road to four states across the country, to meet with policymakers, industry experts, consumer advocates, law enforcement officials, and members of the academic and business community. The tour is designed to raise awareness about the frequency of data breaches and to encourage the adoption of comprehensive reforms so that consumers can be better protected.
As a part of the #DataInsecurity Project, NCL has also unveiled important new research by Javelin Strategy & Research investigating the impact of data breaches on consumer trust, on who consumers feel should be responsible for their data, and on current responses to data breaches. Check out NCL's new survey report.
You can get involved!
Help us send the message that the time for reform is now! Sign our petition to the White House calling on policymakers to step up and protect consumers’ data.