You might think retailers would be eager to beef up their security systems after up to 70 million Target Corp. customers had personal data stolen by hackers, but that may not be the case, according to this article on CNNMoney.com.
Large retailers have resisted expensive changes to their point-of-sale systems and security standards. For one thing, says the article, newer credit card technology could slow down checkout lines. For another, retailers also see more to gain by collecting consumer information than protecting it.
A report by the McKinsey Global Institute said that keeping data such as as a customer's name, bank card information and ZIP code promises up to 60 percent higher returns. New security standards that would keep personal information away from hackers would also keep it away from retailers.
But estimates from trade groups released yesterday said that the data breach at Target has cost banks and credit unions more than $200 million, according to this Fox Business story.
The Consumer Bankers Association said that its members have incurred a total cost related to card replacements of $172 million, and the Credit Union National Association believes the cost to its members to be $30.6 million.