NV Senator Requests Treasury to Examine Data and Payment Security

Sen. Catherine Cortez Masto (D-NV)
Sen. Catherine Cortez Masto (D-NV)

Sen. Catherine Cortez Masto (D-NV), a member of the Senate Banking Committee, sent a letter last week to the Treasury Department requesting it examine data and payment security as a part of its required study on cyber-threats to financial institutions under the Economic Growth, Regulatory Relief, and Consumer Protection Act (Senate Bill 2155).

This letter, requested by the California and Nevada Credit Union Leagues, is timely. During last week’s committee hearing, regulators from across the banking spectrum agreed that cybersecurity and data security are among the highest threats to financial institutions, while recognizing payment card breaches continue to be an external threat to financial institutions.

Cortez Masto’s letter requests the Treasury Department examine retail breaches as a threat and what the impact is on the consumer, as well as the financial institution.

During the Leagues’ annual “Hike the Hill” event a couple of weeks ago, credit union advocates from California and Nevada raised the continual plague of data breaches as an issue that Congress must address as it’s one of the largest concerns for credit unions. Credit unions have been advocating for some action on the retailer’s part as they hold responsibility for protecting their payment terminals and storing card information in a secure manner.

Regulators have even addressed the threat by repeatedly telling Congress that action must be taken.

Therefore, the senator’s letter is one more step in credit unions’ long-term plan. It further brings into light the concern of the consumer, who could experience additional complications when cards are breached, such as rare cases leading to identity theft.

Credit unions continue to work on bringing a resolution to this issue as it impacts the bottom line and the member experience.

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