Fast-food chain Wendy’s announced recently that it has been investigating claims of a possible credit card breach at some restaurant locations following reports from banking industry sources of unusual payment activity and a pattern of credit card fraud dating back to late 2015.
The Wendy’s investigation has revived interest in pending federal legislation regarding data security standards and cybercrime. In response to the news, for example, the National Association of Credit Unions sent a letter to Majority Leader Mitch McConnell (R-KY), Minority Leader Harry Reid (D-NV), Speaker Paul Ryan (R-WI) and Minority Leader Nancy Pelosi (D-CA) on January 27, 2016 urging support for bipartisan legislation to create national data security standards. The letter urges support for H.R. 2205 and S. 961, the Data Security Act of 2015, which, according to the letter, would:
“[C]reate flexible requirements that, while protecting consumers’ data in the current environment, would also allow for and encourage innovation to protect consumers from future threats we have not yet anticipated. Additionally, the national standards created would be scalable to allow for compliance by entities of all sizes. Just as the GLBA [Gramm–Leach–Bliley Act] institutes requirements that are appropriate for both the smallest credit unions and the biggest banks, this legislation would allow for appropriate standards for the smallest corner store to the largest retailers.”
Data breaches can result in the loss of financial and personally identifiable information. With the number of daily electronic payment transactions in the hundreds of millions, the threat of data breach is of serious concern.
Reporters, Caitlin Swauger, New York, +1 212 556 2188, cswauger@kslaw.com, and Claudia A. Hrvatin, Washington, D.C., +1 202 661 7950, chrvatin@kslaw.com.
