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Pending legislation would beef up business’ role in securing personal financial data
Tuesday, May 12, 2009 (Austin, TX) Millions of Texans -- almost one in three (29 percent) according to a new poll released this week -- have had their credit or debit cards cancelled because of fraud or a breach in business security by hackers. Eight out of 10 say they want to see the Legislature act.
The most recent breach compromised more than half a million cards at Texas Credit Unions alone. These breaches potentially expose millions of Texans to identity theft. It’s a costly and serious problem all around: for consumers who have set up automatic payments to their credit or debit card and may be hit with late fees when cards are cancelled, and for issuers who end up covering millions of dollars in fraud and replacement costs. All because criminals are targeting huge data bases which hold card member data – without the knowledge or permission of the individual.
Texas lawmakers have the opportunity to protect Texans from many of the problems resulting from these breaches and the theft of card information. House Bill 345 will require businesses that collect debit and credit card data must take reasonable steps to protect that data, and gives the power to the Attorney General to take action if they don’t protect the data.
“Clearly Texas voters overwhelming support better protection of their personal financial information,” said Buddy Gill, Chief Advocacy Officer at the Texas Credit Union League (the League). “They are undoubtedly tired of having their financial information vulnerable. The question now is whether the legislature will act.”
Texas consumers agree. In the statewide poll of 800 Texas voters, a whopping 73 percent believe businesses would do a better job protecting their customers’ private data - if they had to pay costs for replacement and fraud. Another 83 percent think the state ought to pass laws to protect their data.
“There are businesses that have databases filled with personal financial information of Texans, information that, in some cases, has been gathered and stored without the knowledge of the individual. We need a law to make it clear – data must be protected,” said Gill.
HB 345 by Rep. Gary Elkins (R-Houston) was approved unanimously by the House Business & Industry Committee but has not been set for floor debate yet, and risks being lost in the final days of the session. The Senate companion bill is SB 327 by Leticia van de Putte (D-San Antonio).
The poll was conducted April 23-26 by Public Opinion Strategies and Hamilton Campaigns and commissioned by the Texas Credit Union League. The margin of error is +/- 3.46 percent. For more information on this and other consumer advocacy information, visit www.CUVoice.com.
About Texas Credit Union League™
The Texas Credit Union League is the official trade association for credit unions within the State of Texas. The League represents, on a state and federal level, nearly 600 credit unions state-wide, which are owned by over seven million members (about one-third of the state’s population). Organized in 1934, the League protects credit unions and promotes their growth, strength and unity. It accomplishes the mission through advocacy services, regulatory and compliance advice, training and event activities, marketing and public relations actions, and by delivering innovative, high value and profitable business solutions to the members. For more information, visit www.tcul.coop and www.creditunionmember.org; write to us at 4455 LBJ Freeway, Suite 1100, Dallas, Texas 75244, or call us at 469-385-6400.
CONSUMER TIPS TO PROTECT YOUR FINANCIAL IDENTITY
Monitor your accounts frequently. Check your credit card statement every month, and your account tied to your debit card every week. Look for suspicious transactions and contact your credit union immediately. Many merchant breaches are discovered by reports of fraud.
Beware of the “skimmer.” When paying for transactions, keep your card in sight, if possible, and watch for efforts to run your card through a second device, which allows them to grab your financial data from your credit or debit card and store it for use later.
Show your ID. Note on your card that you want merchants to ask for your ID. It could encourage greater caution with your card.
Ask your state legislator to act. Bills are being debated in the Texas Legislature could provide stronger protections for your private information.
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