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Biggest ID theft breach yet was from negligence!


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Biggest ID theft breach yet was from negligence! :shock:

It was nut just basic stupidity and bad data security practices that lost the data. It was outright negligent improper procedures. CardSystems is in real trouble and I would suppose as they are in violation of their contract with Visa and every other credit card network for holding on to the account information after a transaction. Man I would not want to be the CEO of CardSystems this week (John Perry)! And now it's 200,000 accounts compromised or more, not 68,000! :evil:

Credit card processing company admits to negligence

The head of the credit card processing company whose computer system was breached by hackers, exposing millions of credit card accounts, has acknowledged that his firm should not have been keeping the consumer records in the first place.

The official, John Perry, chief executive of Atlanta-based CardSystems Solutions Inc., said that the records known to have been stolen covered roughly 200,000 of the 40 million compromised credit card accounts, from Visa, MasterCard, and other companies.

He said the data was being stored for ''research purposes'' to determine why some transactions had registered as unauthorized or uncompleted. ''We should not have been doing that,'' Perry said in Monday's editions of The New York Times.

Under rules established by Visa and MasterCard, processors cannot retain cardholder information after handling transactions.

''CardSystems provides services and is supposed to pass that information on to the banks and not keep it,'' Joshua Peirez, a MasterCard official, told the Times. ''They were keeping it.''

The security breach was first reported Friday when MasterCard International Inc. said computer hackers may have accessed more than 40 million credit card accounts. About 13.9 million were from MasterCard accounts."


Credit card security breach, By AP and CP

CANADIAN CREDIT card companies are telling card holders to monitor all financial transactions following a security breach in the U.S. that could affect up to 240,000 Canadian Visa card holders.

"We are still trying to determine the cards that have the potential of being compromised," Visa Canada spokesman Mei Velasquez said yesterday.

"CardSystems was hit by a virus-like computer script that captured customer data for the purpose of fraud, Gamsin said. She said she did not know how the script got into the system. The FBI was investigating."



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