Split deepens between retailers, credit unions

Don’t expect credit unions to join the financial services’ and retail industry’s cybersecurity partnership anytime soon.

Six of the top retail industry groups sent a letter on Thursday to the National Association of Federal Credit Unions (NAFCU) and the Credit Union National Association (CUNA) criticizing them for not joining the partnership.

The Retail Industry Leaders Association (RILA) and the Financial Services Roundtable (FSR) established a private-public partnership to share threat information in March.

“Unfortunately, while retailers, restaurants, convenience stores, hotels, national banks, card networks and community banks have joined the Partnership, one constituency has still not seen fit to participate: credit unions,” RILA and other retail groups wrote in the letter on Thursday. 

In response, NAFCU president and CEO Dan Berger said, “we will join their partnership when retailers and merchants begin properly protecting consumers’ data and investing in the technology necessary to do so.”

Credit Unions have argued that data breaches like the recent ones at Target and Home Depot end up costing credit unions more money than retailers. That’s because banks and credit unions must reissue consumer cards following a breach, which can cost millions. 

Retailers dispute this, arguing that they too must contribute to the costs once the breaches are brought through the judicial process.

It’s set-up a familiar inter-trade industry squabble that’s become all too familiar for retailers and credit unions as data breaches have increased.