Survey: Target breach costs credit unions $25 million to $30 million to date
Madison, Wis. – Target Corp.’s data security breach has already cost all credit unions between $25 million to $30 million. Those numbers are expected to rise in coming weeks as more of the cooperative financial institutions report their costs and as fraud losses are incurred down the road, according to preliminary results of a survey of credit unions by the Credit Union National Association (CUNA).
The results of the CUNA survey show that, on average, the Target breach has cost credit unions about $5.10 per card affected by the security lapse. These costs most likely do not include any fraud losses, which are likely to occur later. Additionally, the cost/card figure is an average across all affected cards, not just cards that have been reissued.
The results come from a CUNA online survey posted Jan. 3 on the CUNA website (CUNA.org), and noted in various CUNA member publications. CUNA-member credit unions were asked to report the effects of the Target data breach, which was first announced on Dec. 19. As of Jan. 16, a total of 936 credit unions had responded.
Credit unions responding to the survey report having almost 18 million debit cards outstanding, and just less than 1.5 million credit cards outstanding. These totals represent roughly a third of the estimated number of debit cards outstanding at all credit unions, and somewhat more than that of estimated outstanding credit cards.
Credit unions are still gathering information about the costs of the breach. Once credit unions have had sufficient time to respond to the survey, CUNA will provide a more complete report of the results. The results so far indicate that the majority (77%) of credit unions whose members were affected by the Target breach have already reissued debit or credit cards to their members. About 21% said they will reissue or have selectively reissued cards in response to member requests or other factors. About 2% do not plan to reissue any cards.
In addition, more than one in three credit unions (35%) report having to increase staffing (additional overtime, shifts, etc.) as a result of the Target data breach. And about 38% of credit unions reported that their call volume from members increased 10% to 25% in the wake of the breach.
"Contrary to what some may think, these expenses will not be reimbursed to credit unions and their members by Target or other retailers," said CUNA president and CEO Bill Cheney. "Rather, credit unions must solely cover these costs of their card program administration, including in these circumstances of reacting to a merchant data breach."
McDonald’s net income, revenue rise in Q4
Oak Brook, Ill. – McDonald’s Corporation reported small increases in consolidated net income and revenues for both the fourth quarter and full fiscal year 2013, compared to the same periods a year earlier. During the fourth quarter, McDonald’s net income rose fractionally to $1.397 billion from $1.396 billion and revenues grew 2% to $7.09 billion from $6.95 billion.
During the full fiscal year, consolidated net income rose 2% to $5.58 billion from $5.46 billion and revenues also increased 2% to $28.1 billion from $27.6 billion. Global same-store sales decreased 0.1% in the fourth quarter, reflecting higher average check and negative same-guest counts, but rose 0.2% for the full year, reflecting higher average check and negative comparable guest counts.
In the U.S., same-store sales fell 1.4% in the fourth quarter. Looking ahead, the segment is intent on optimizing current initiatives by strengthening its focus on menu choice, customer engagement and operations excellence to drive sales and profitability
"While 2013 was a challenging year, we begin 2014 with a renewed focus on the global growth priorities that are most impactful to our customers,” said McDonald’s president and CEO Don Thompson. “At McDonald’s, delivering a consistent customer-focused restaurant experience continues to be our top priority."
Lease the Oscar Mayer Wienermobile via Twitter
Remember the Oscar Mayer Wienermobile? Well, the brand is offering a chance for people to “lease” the hot dog on wheels for eight hours via Twitter.
Participants must use hashtag #Tweet2Lease, and one winner will be chosen to get chauffeured around town for eight hours on the Wienermobile by the vehicle’s drivers, known as Hotdoggers.
"Being the first car available for lease exclusively on Twitter was far too big a distinction to go to any old sedan or sport-utility vehicle," said Tom Bick, senior director of integrated marketing and advertising at Oscar Mayer. "Only a 27-foot-long hot dog on wheels, the Wienermobile, would do."
The promotion will be a supported by a Wienermobile "car commercial" that will be posted to the Oscar Mayer YouTube channel and promoted through paid advertising placements, social-media seeding and public-relations efforts.
The Tweet2Lease sweepstakes will run through Feb. 7. In addition to the Wienermobile lease, the Tweet2Lease winner will also receive a $500 cash prize.
Click here for official rules, and check out the video.