Lobbying associations representing the retail and banking industries are pointing fingers over who’s to blame over the breach last month that exposed the credit card numbers of as many as 110 million Target customers.
The National Retail Federation, which represents Target, sent a letter on Tuesday to members of Congress, claiming that banks have failed to upgrade to the most secure technology for processing transactions in the U.S.
“For years, banks have continued to issue fraud-prone magnetic stripe cards to U.S. customers, putting sensitive financial information at risk while simultaneously touting the security benefits of next generation ‘PIN and Chip’ card technology for customers in Europe and dozens of other markets,” Matthew Shaw, CEO of the National Retail Federation, wrote in the letter.
But the banking industry isn’t letting that accusation slide. The Independent Community Bankers of America fired back at the retail group with a statement on Wednesday.
“The NRF should focus its attention on responding to the harm that security breaches at several retailers have done to consumers and their financial institutions rather than hurling false allegations blaming the banking industry for these retail breaches,” Camden Fine, the CEO of the Independent Community Bankers of America, said.
“Retailers and their processors — not banks — are responsible for the systems in their stores that process payment cards.”
Fine said he hopes the massive breaches at Target and Neiman Marcus will spur retailers to adopt better security procedures.
The Target breach was likely the work of a sophisticated ring of hackers, possibly based in Russia, according to a report released last week by the cybersecurity firm iSight, which worked with the Homeland Security Department. The hackers gained access to the credit card numbers by injecting a virus into Target’s card readers, the report found.
What We're Following See More »
Special counsel Robert Mueller "is now demanding documents from the department overseeing his investigation." A source tells ABC News that "Mueller's investigators are keen to obtain emails related to the firing of FBI Director James Comey and the earlier decision of Attorney General Jeff Sessions to recuse himself from the entire matter."
"President Donald Trump would not insist on including repeal of an Obama-era health insurance mandate in a bill intended to enact the biggest overhaul of the tax code since the 1980s, a senior White House aide said on Sunday. The version of tax legislation put forward by Senate Republican leaders would remove a requirement in former President Barack Obama’s signature healthcare law that taxes Americans who decline to buy health insurance."
"Members of Congress with histories of mistreating women should be extremely nervous. Major outlets, including CNN, are dedicating substantial newsroom resources to investigating sexual harassment allegations against numerous lawmakers. A Republican source told me he's gotten calls from well-known D.C. reporters who are gathering stories about sleazy members."