Global Payments Takes Responsibility for Data Breach (Misc News: April 4, 2012)
Credit unions which have not heard from their processors should contact them concerning the recent data breach reported by Visa on March 23.
Flo Cobb, vice president of Lending Solutions & Insurance Solutions for CUcorp, said that a third-party processor may have been compromised and that Track 1 and Track 2 data may have been breached.
This week, Global Payments Inc. was removed from Visa’s compliant service providers” list after revealing the breach, according to CUNA News Now.
While the breach was initially reported as possibly affecting 10 million debit and credit cards, Global Payments said that it “contained” the breach to less than 1.5 million cards, News Now reported. Global said that cardholder names, addresses and Social Security numbers were not compromised.
Cobb said credit unions should pay careful attention to their CANS and CAMS notifications. Credit unions may want to consider reissuing cards if they find out that they were part of the breach.
She added that credit unions can also help spot potential problems.
“If they identify specific fraud trends, they should notify the processor which will in turn notify MasterCard or Visa,” she said.
Specifically, credit unions should watch for “test transactions” – small-amount transactions that hackers often use to see if an account is still open.
The Members Group, a Des Moines, Iowa-based card processing and payment solutions company for credit unions, is warning credit unions to be on high alert for credit card fraud stemming from the breach. It is assisting its card-issuing credit union clients with implementing defensive strategies to minimize the impact of card fraud resulting from the breach.
"The best prevention strategies will be different for every issuer and will depend greatly on where and how the fraudulent activity occurs," Karen Postma, cards risk senior manager at The Members Group said in a press release. For some credit unions, reissuing the card may be the best approach to minimizing losses. For others, tighter rule-setting and diligent monitoring will be sufficient, she said.
Anyone who has questions can contact Cobb at (800) 262-6285 or Flo.Cobb@mcul.org.