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Visa (V -0.5%) and MasterCard (MA -0.5%) reportedly sent alerts to banks late last week of a...

Visa (V -0.5%) and MasterCard (MA -0.5%) reportedly sent alerts to banks late last week of a "massive" security breach at one of their U.S.-based credit card processors, and certain cards may have been compromised. The breach is believed to have occurred between Jan. 21 and Feb. 25, and could involve as many as 10M credit card numbers.
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Comments (7)
  • Tommy_Finger
    , contributor
    Comments (320) | Send Message
     
    If we are headed towards (but not completely) a cashless society, this gives me the jitters....
    30 Mar 2012, 10:23 AM Reply Like
  • whiff
    , contributor
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    Let me get this straight - the breach existed for more than a month back in February --- banks were informed "late last week" --- and only now, the people who use the cards are "informed" --- let me guess - no one has a clue who did it
    30 Mar 2012, 12:56 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (8391) | Send Message
     
    I'm collecting stuff on this story as it comes out at http://seekingalpha.co... and will try to keep y'all updated.

     

    Briefly, it seems the gang got administrative access to a major customer of Global Payments (GPN), siphoned off the data, and then managed to decrypt the PCI encryption on that data.

     

    GPN trading was halted with the stock down 9%.
    30 Mar 2012, 02:10 PM Reply Like
  • Windsun33
    , contributor
    Comments (4308) | Send Message
     
    It is just a matter of time before the CC companies will have to put in better security methods, especially for online orders. I would not have to be difficult for most, just a PIN number for online orders would stop 80% of the fraud.

     

    Of course that would require a total revamp of every single online store in the universe to accommodate the extra field and API.
    30 Mar 2012, 03:17 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (8391) | Send Message
     
    This has nothing to do with online orders. The real issue there is that online merchants pay a higher discount than stores, because the card isn't presented.
    30 Mar 2012, 03:24 PM Reply Like
  • Windsun33
    , contributor
    Comments (4308) | Send Message
     
    I think it does. We get anywhere from 1 to 5 fraud orders a week from stolen cards. We always call the cardholder if it looks fishy at all, but when there are millions of card numbers being stolen it gets more difficult.

     

    Online orders supposedly make up over 70% of stolen card fraud.
    30 Mar 2012, 03:30 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (8391) | Send Message
     
    That's because there is less security on them. Most online merchants don't even require what I call the "powerball number" -- the three or four digits on the back of the card -- before doing an authorization.

     

    This may be a more important cost difference, in the end, than sales tax or shipping.
    30 Mar 2012, 03:56 PM Reply Like
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