Is your data breach plan in place and up to date?

by. Nicole Reyes

Is your financial institution (FI) prepared for the next breach? It’s no longer a question of “if” a breach will occur; it’s a question of “when.”

Just the other day, a colleague shared with me that one of TMG’s fraud analysts had dubbed 2014 “The Year of the Data Breach.” I know many others in the payments industry agree with the prediction. In fact, I recently came across an interview with Experian’s Vice President of Data Breach Resolution Mike Bruemmer in which he suggests the increased number of breach incidents may even lead to what he calls “breach fatigue.”

The Year of the Data Breach started off strong with Target, Neiman Marcus, Michael’s and Sally Beauty all reporting data compromises impacting millions of cardholder credit and debit cards. Since those incidents, there have been whispers that more retail merchants have been breached, as well, though no others have gone public yet. I don’t see the momentum letting up throughout the year, as fraudsters are known to take advantage of tools and strategies that have proven effective.

The most important thing card issuers can do to brace themselves for the tough months ahead is to create a strategic action plan and get corresponding procedures firmly into place. Like Bruemmer told BankInfoSecurity, “Organizations really have fewer excuses why they shouldn’t be prepared. It’s much more cost-effective to prepare, to pay the price and invest up front, versus paying later.”

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