CardSystems Solutions moronic security efforts have resulted in the potential theft of information for 40 million credit cards. Hackers were able to install a rogue program, probably a Trojan, in the CardSystems security network. This program captured credit card information including the cardholder’s name, account number and verification code.
CardSystems Solutions is an Atlanta-based company. Prior to this incident, it processed approximately $15 billion dollars in credit card transactions each year. Small businesses were the primary users of the system.
The FBI and MasterCard International have launched investigations into the hack. It has become apparent CardSystems Solutions should be charged with gross negligence. The company failed to comply with MasterCard security regulations and failed to destroy the information of cardholders after prescribed time periods.
In a matter of gross incompetence, CardSystems failed to encrypt any of the credit card data for users. This is the equivalent of your bank sending monthly account statements will all the information printed on the outside of the envelope. It is simply inexcusable and has led to potentially the biggest theft of financial information in history.
Which Credit Cards?
The incompetence of CardSystems Solutions will have an impact on every major credit card group. Estimated numbers range from about 20 million Visa cards exposed to 14 million MasterCard credit cards. As many as 4 million American Express and Discover accounts were also put on the sacrificial altar by CardSystems.
What You Should Do
You should review all charges on credit card statements over the next 12 months. Contrary to popular belief, hackers typically will not go out and charge up thousands of dollars on the card. Instead, you should look for small charges of $10 to $20 from companies with bland names. Hackers know that many people will not call to reverse a small charge. Don’t be lazy! Closely inspect your statement and contest any charges that aren’t familiar.
Closing
How big is this hack? There are approximately 300 million people in the United States. 40 million accounts equates to 1 in every 7.5 people. Yes, people carry multiple credit cards, but it is still a huge number. CardSystems Solutions should pay a heavy price for its incompetence. Frankly, it should be liquidated. There is little doubt the major credit card companies will take action.
Richard Chapo, Esq., is a business lawyer with http://www.sandiegobusinesslawfirm.com - offering legal advice to San Diego businesses. This article is for general education purposes and does not address every facet of the subject matter. Nothing in this article creates an attorney-client relationship.
What do you think about this article? Do you agree or disagree with it? Be the first to comment on this article, and share your thoughts with the world. No registration is required to post comments.
Saturday, MasterCard blamed a vendor of ALL credit card
providers called CardSystems Solutions, Inc., a third-party
processor of payment card data, as the source of loss of 40
million consumers credit card...
The credit card process involves the cardholder which owns the credit card to make purchases. Then the merchant which is the business that accepts card payments for items you agree to purchase. Next you...
On February 22nd, 2010, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act took effect. The CARD Act had one major purpose: to attempt to harness in credit card practices and set...
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid...
A fairly straightforward and simple way for a thief who has knowledge of credit card fraud to "make a living" is by stealing credit card numbers, at least for a short period. Now, you may be thinking you...
Looking For Credit Card Rewards JD Theis Credit card rewards refer to bonus points awarded for every purchase made by the credit card owner. By accumulating a certain number of reward points, the credit...
If you have a low credit rating, you will most likely not be offered an unsecured low interest credit card. This requires faith on the part of the credit card company that you will repay your debts on time....
Credit card debts can pose a very serious problem for you. Credit card debts occur when unsecured user debt piles up on you through credit cards. Debts usually happen when a credit company's client...
It is a basic and well-known fact that most credit card companies penalize those of their customers who are late in making their credit card balance payments. Indeed, a considerable number of credit card...
Finally, the Credit Card Reform Act has been penned into law. Long awaited and equally long overdue, the card act is to be officially known as Credit CARD Act or Credit Card Accountability, Responsibility...
She used her debit card at a motel in Milwaukee to pay for the state and noticed on her next month's bank statement that someone had racked up a $3,500 bill at different hotel of the same brand in Chicago....
USA Payment Solutions provides expert merchant processing services and have aligned with multiple payment processing companies to find the best cost solutions to meet his/her merchant processing needs.
Many people find it hard to choose between whether to use a debit card or a credit card. Both of these have advantages and disadvantages associated with them, and you will need to think about what each has...
Alright, so we know the economy could possibly be better, and we likewise are aware that lots of people happen to be suffering financially. The particular unfortunate part is many people happen to be...
One of the aspects of a consumer society such as is widespread in the West, is the huge number of gadgets that people are persuaded to purchase by advertisers and the debt that we are persuaded to get into...
Managing your credit card over the Christmas period can be a real challenge. The reason for this is because at this time of year, many people are under a lot of pressure to buy a lot of gifts for people....
'Flexible friend' or 'plastic money' are two of the most widespread unofficial terms used to refer to credit cars in the English-speaking countries. These are quite affectionate terms and most people are...
Almost everyone over the age of consent (18 or 21) has or wants a credit card nowadays, and they are accepted in almost every establishment. There are three main kinds of credit card in use in America. The...
Consolidating credit card debts from a settlement company has its own negative aspects. High interest rates could drain your own monetary resource quite easily. In case you have noticed yourself bogged down...
Settlement credit card debt counseling can aid individuals in debt find a solution that will fit their spending budget and general financial condition. Credit-based card debts could be overwhelming...
In 1999, I decided to live a year in the city of Chita, Russia. For those not in the know, Chita is a city in Siberia.HistoryThe City of Chita is a the administrative center of the Chita Oblast, which is...
After deciding to move to Siberia for a year to teach at the Chita State Technical University, I embarked on a travel odyssey unlike any other. In this entry, we pick up the trip leaving the train station...
After deciding to move to Siberia for a year to teach at the Chita State Technical University, I embarked on a travel odyssey unlike any other. In this entry, we pick up the trip on the Trans-Siberian...
After deciding to move to Siberia for a year to teach at the Chita State Technical University, I embarked on a travel odyssey unlike any other. In this entry, we pick up the last stage of the seven-day trip to
Isla Mujeres in Mexico is a great way to escape the tourist crush in Cancun. Roughly 9 miles offshore, the island contains the Mexican beach culture of a bygone era. Oh, and the name translates to "The...
The Riviera Maya on the Caribbean coast was a secret getaway to paradise for many years. No longer. Now it is considered one of the finest beach areas in the world.Riviera MayaLocated on the Yucatan...
A sleepy island area in the 1970s, Cancun has been transformed into a mega tourist destination. Located on the Caribbean side of Mexico, this resort area has something for everyone.CancunMake no mistake...
Legal issues and problems are stressful, complex and inevitable. If you get wrapped up in legal issues, it sometimes helps to understand the lingo being bandied about.Legal TermsContract: An agreement...
Business entities comes in so many types that business owners can easily get confused. Here's a quick guide that will hopefully shed a little light on business entities for you.Business Entities"C"...
Article: 40 Million Credit Card Numbers Stolen - CardSystem Solutions Incompetence Author: Richard Chapo Publication Date: 2007-06-21 Total Views: 103 Word Count: 440 Category:Home /
Finance / Credit / Credit Cards
Categories
