Retailers call for collaboration to combat cyberattacks

In a statement submitted today to the U.S. Senate Committee on Banking, Housing & Urban Affairs Subcommittee on National Security and International Trade and Finance, the Retail Industry Leaders Association (RILA) highlighted the importance of collaboration among retailers, banks and card networks to advance payments security to prevent future cyberattacks. The letter was submitted for the record ahead of the Subcommittee hearing, "Safeguarding Consumers' Financial Data."

The hearing will examine the procedures for overseeing data security and breaches of data security by the U.S. Secret Service and the Federal Trade Commission, the adequacy of current technology in securing consumer financial data, and recommendations for strengthening data protections for consumers. RILA recently announced the establishment of a trusted forum through which retailers can share threat information and advance effective security solutions and collaborate with other stakeholders in the payments system.

"While retailers understand and manage their internal systems and security, they have little or no influence over the actions taken by other players in the payments universe, actions with enormous implications on fraud," said Bill Hughes, senior vice president of government affairs at RILA. "Instead, retailers must rely on others in the payments ecosystem to dictate critical security decisions, including card technology, retailer terminals, and when data can be encrypted during the transmission between retailers and the card networks. Retailers have long argued that the card technology in place today is antiquated and because of that criminals can use stolen consumer data to create counterfeit cards with stunning ease." Statement