Credit Card Breach: Visa, MasterCard, American Express, Discover Customers Vulnerable

Heartland Payment Systems, a major payment processing company, disclosed a data breach on Monday that potentially exposed tens of millions of credit and debit cardholders to the risk of fraud in what could quickly become one of the country's biggest data compromises.

Robert H. B. Baldwin Jr., Heartland's president and chief financial officer, said that his company believed the card numbers, expiration dates, and in some cases cardholder names were exposed after attacks on its computer systems at the one point where data had been unencrypted.

Once consumers swiped their cards, so-called sniffer software captured that data as Heartland sought authorization from the major payment companies and banks. Customers of Visa, MasterCard, American Express and Discover Financial were all vulnerable.

Read the whole story here.

Comments

[robinhood1]

If you are concerned about identity theft, place a credit freeze (not just a fraud alert) at each of the three major credit reporting agencies (Experian, Trans Union and Equifax). It costs a small amount to place the initial credit freeze and a similar amount to arrange for the freeze to be temporarily lifted by you when you want to apply for new credit and you won't be able to get instant credit, as it takes a few days to lift the freeze. But the cost is much lower than the cost of an annual credit protection subscription offered by various banks, the reporting agencies themselves and outside companies such as Lifelock and the protection is certainly more complete. Many credit providers are not very careful about fraud alerts.

[CaptainHowdy]

I see that stealing money from us via these criminal bailouts was not enough for them.

[JPHR]

The only difference with normal mode of operation of the credit companies themselves that this kind of stealing is deemed illegal. So you are still being robbed blind anyway.

[gjohntheterrible]

Wonderful.

[PlanetKansas]

There will be a major internet security breach very soon. Small ones happen daily, but the big one is yet to happen and we will know when it does. It is a modern and safer version of robbing banks, and it is hard to tell if it is the mafia in the former USSR or your next door neighbor.

If Obama wants to spend money on new infrastructure to rebuild the economy, replacing the open source design of the internet would be a good place to begin. The designs are already out there, it needs leadership and vision to implement.

[frantaylor]

"replacing the open source design of the internet"

What the heck are you talking about?

[vigilantwarrior]

Which companies were involved in THIS "breach"?

http://michaelfury.wordpress.com/2008/08/20/the-ghost-in-the-machines-the-mystery-of-the-wtc-hard-drive-recoveries/

[Chavez08]

It will take awhile before Americans can mentally, emotionally handle asking the necessary questions about 9/11.

[AngieMom57]

"I want my bail out money..."

http://www.youtube.com/watch?v=dnT21hmlT4o

[Fabini]

-

Credit castles crumble
Brazen brachiate breach
Alarm alert arises
Minimum payment due in twenty days

-

[ReasonIsMyReligion]

Ready for a good laugh?
Click thru to Heartland's site and CHECK OUT THEIR MOTTO!
Bwaaa haaa haaa!

[TJCole]

So they are surprised when they leave the data unencrypted and someone an ex-employee or eve current employee not doubt exploited this huge breach in their non existent security...!

Did they tell users that during this gap, their info was unprotected, if not then they should be sued out of existence..

Our bankers live by a wrapped double standard if you make an error they charge you $32 to $35 bucks if they mess up big time for billions they get a huge reward and bail out from our government that was meant to over see them...!

Why isn't the baking system reciprocal...why must customers pay these huge fees for a simple error of $2-3 dollars by a charge 10 x's the amount of the error quite often..?

If we don't nationalize these banks we had to recapitalize then all we did was pour money down the drain..

We're not a government of the people any more, we're a government of the bankers, by the bankers and for the bankers, and that's not gonna change unless President Obama takes this fight to the people, where his true strength lies and stops listening to Goldman Sachs and the likes of Geithner and this horrible Schapiro woman..among others "Philistines not much more..!"

[FogBelter]

I believe the Credit Card companies must have a contract with Heartland Systems which allows Heartland to access Card Association systems in order to perform transactions. If that were the case, one would think that the Credit Card companies would perform some degree of due diligence to insure their customer data though the processor was secure.

If it was a fraud that took place at a store or business that was breached that would be one thing, and the business would be culpable, but a known Payment Processor, which would be an intermediary for debit and credit card transactions between the Credit Card companies and the Merchants would put the Card Associations and Heartland Systems on the hook for the losses, I would think.

[Meggie]

While I agree with you, I don't think it will be realistic for any victims in this to expect these companies to be held responsible or to help in any way to clear up identity thefts. Who in power will make them be held accountable?
They must strongly feel that the pro-"big business" attitude in Washington will protect them from all complaints or they would all do a much better job at security.

[BBackSoon]

Cashless society my @ss!

Greenbacks are still useful. We could lose the $1 but the rest we still need.

[Meggie]

There has been a huge separation and disenfranchisement of the working poor and those with fixed incomes in the past few years. Imagine when Walmart proudly runs ads that it cashes your checks for $3/each! Don't people with enough money to have even a minimal bank account get these services for free?

[BBackSoon]

I have an unrelated one for you. My wife Finally got a new job. She did the drug test, it showed positive for Darvocet. She has a script but needed a form from the doctor. No big deal, right?

The Medical Business he works for charged us $30 dollars to send the form.

Everyone wants that extra $20 or $50 from you now days.

[budderbean]

Imagine that, There just seems to be nothing but troubles ahead for the banking sector.. The basket of egg's is falling..

[Sunshine1970]

*sigh*

Happened to me last year, along with family members, and some coworkers. All of us had new cards issued. Luckily our bank caught the transactions before any money disappeared from our account.

I feel so much safer the CFO apologized to all of us for the breach. /s

[Chavez08]

Don't you feel relieved kowing that all your personal financial information is being passed around freely in Indian call-centers?

[Sunshine1970]

Oh, yes, I feel even more safe now that you've mentioned it

[FogBelter]

Don't forget the outsourced Data Centers whose computer operators have remote access to a wide array of American's personal data on US Corporate Computers from their work stations in India, Russia, etc.

[Chavez08]

GLOBALIZATION-YAAYYYYY!!!!