40 Million Credit Cards Hacked

CardSystems Solutions, a company that processes credit card payments, reported that credit card security was breached in its computer systems. Information for up to 40 million credit cards may have been taken from the system, the company announced, as the result of a computer break-in identified on Sunday May 22. The company reportedly notified the Federal Bureau of Investigation of the incident on Monday, May 23, but details did not emerge until yesterday.

Credit card issuers were quick to react to the news. MasterCard, which reported that nearly 14 million of the credit cards were MasterCards, reiterated its "Zero Liability" policy, a program that relieves consumers of liability for charges in such matters.

"Hardly a week goes by without startling new examples of breaches of sensitive personal data reminding us how important it is to pass a comprehensive Identity theft prevention bill in Congress quickly," said Senator Chuck Schumer (D-NY). Consumers' personal and financial data has become the gold of the 21st century and we need to protect it accordingly." Schumer is the co-author of a bill that would install various consumer protections in the industry, in addition to creating national standards for handling sensitive consumer information.

Security experts throughout the industry are warning consumers to be especially vigilant now because the CardSystems incident is apparently the work of hackers rather than the loss or exposure of data. "Check your statement at least every month," advises Joan Bounacos, President of Consumer Help Web, a consumer advocacy company.

Bounacos called on credit card issuers to react faster to threats and notify consumers as soon as their data is exposed. "CardSystems reported that they found the incident on a Sunday, but didn't report anything to the FBI until Monday," Bounacos said. "Why expose consumers that additional day? Even though credit card issuers won't hold consumers liable, the average consumer will spend hours fixing their credit and arranging to have the charges removed. No delay is acceptable."

posted by Consumer Help Web Editorial Team at 9:18 AM |