Groups representing merchants and banks said they are joining forces to examine the spectrum of payment systems.
“This partnership will improve collaboration across the payments ecosystem, allowing us to work together to develop near- and long-term solutions that will enhance security for our customers,” said Sandy Kennedy, president of the Retail Industry Leaders Association, in a joint statement from all organizations involved in the partnership.
RILA and the Financial Services Roundtable (FSR) were credited with initiating talks for the partnership. They are joined by the American Bankers Association (ABA), American Hotel and Lodging Association, The Clearing House, Consumer Bankers Association, Food marketing Institute, Electronic Transactions Association, Independent Community Bankers of America, the International Council of Shopping Centers, National Associations of Convenience Stores, National Grocers Association, National Restaurant Association and National Retail Federation (NRF).
The groups said the cybersecurity coalition will examine the relationships between retailers, banks, card companies, processors, security and technology vendors—sharing information with the goal of data protection and thwarting cyber attacks.
“Exploring avenues for increased information sharing and collaboration on innovative technologies and safeguarding data will be critical in defending against common enemies,” said Tim Pawlenty, CEO of FSR.
The groups together said new technologies “must be implemented” and continue to stay updated to make sure payment transactions are achieved with less risk.
“We have a real opportunity to find solutions, and continuing opportunities to meet threats posed by cyber thieves,” said Frank Keating, president and CEO of the ABA.
In recent months many companies within the trade associations banding together to form this working group have suffered data breaches, including Target, Neiman Marcus, Michaels, and Barclays, as well as local restaurants in Massachusetts and Florida.
The owners of McGuire’s Irish Pub in Florida said customers’ payment card information was stolen during a 90-day period ending in December from two locations.
Late last year Boston’s Briar Group, owners of multiple restaurants in the city, said it suffered a breach that exposed the information of thousands of customers.
“This partnership is a positive step in the right direction, since there is no single solution to the complex issues surrounding cyber security,” said Matt Shay, president and CEO of NRF. “That is why it is important to bring stakeholders together as we seek answers, share solutions and implement programs that not only prevent hackers from breaching data systems, but protects the consumer by shutting down these criminal enterprises.”
Chad Hemenway is Managing Editor of Advisen News. He has more than 15 years of journalist experience at a variety of online, daily, and weekly publications. He has covered P&C insurance news since 2007, and he has experience writing about all P&C lines as well as regulation and litigation. Chad won a Jesse H. Neal Award for Best Single Article in 2014 for his coverage of the insurance implications of traumatic brain injuries and Best News Coverage in 2013 for coverage of Superstorm Sandy. Contact Chad at 212.897.4824 or [email protected].
