Pub. 4 2014-2015 Issue 3

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S November • December 2014 7 n In late September, USA Today reported that 43 percent of companies had a data breach in the last year. The same article reported that despite the rise in breaches, 27 percent of those companies didn’t have a data breach response plan in place. Of the companies that did, only 30 percent of respondents said they thought their response plan would work. Since 2005, there have been some 4200 breaches affecting more than 600 million records nationwide, according to the Identity Theft Resource Center (ITRC). In 2013 alone, more than 600 breaches were reported. The kicker: the banking, credit and financial sector accounted for only 8 percent of the breaches since 2005 – but bears an inordinate share of expenses. So far this year, there have been 568 breaches, the ITRC reported. Despite the fact that the vast majority of these breaches are happening outside of banking, it is our customers who must be fiercely protected. We are constantly stepping up our security practices to pro- tect our customers. Extensive efforts are underway to improve card security including EMV chip technology. Retailers must cover their fair share of costs by upgrading their systems to ac- commodate this new technology and by investing in additional security measures. As bankers, we must domore to help our communities – and our lawmakers – should be reminded of the value of our indus- try and the impact injurious crimes, regulations and laws have on banks and the economy. While we all agree that successful businesses are a pillar of a strong economy, there seems to be a lack of agreement on the need for successful banks. There is a leverage point in profit that stays in the banking industry. Retailers are a distribution channel. FirstBank’s Jim Reuter testified at the U.S. Senate in Feb - ruary on behalf of the ABA in response to the Target breach. He said, “Inter-industry squabbles, like those over inter - change, have had a substantial impact on bank resources avail- able to combat fraud. Policymakers must examine that impact closely to ensure that the necessary resources are not diverted from addressing the real concern at hand: the security of our nation’s payment system and the need to protect customers.” He continued, “Banks are committed to doing our share, but cannot be the sole bearer of that responsibility. Policymakers, card networks and all industry participants have a vital role to play in addressing the regulatory gaps that exist in our payment system, and we stand ready to assist in that effort.” I couldn’t agreemore. Thank you again for your membership in the CBA. n Jeff Schmitz Chairman Colorado Bankers Association CORE BANK PROCESSING • MANAGED SERVICES • MOBILE & INTERNET SOLUTIONS PAYMENTS PROCESSING • ELECTRONIC & PRINT DISTRIBUTION • REGULATORY COMPLIANCE TODAY WE RISE TO THE OCCASION. It’s high time you overcome your IT burdens. csiweb.com/riseup  Information Breaches – continued