Susan Otcenas
No conspiracy.
A large payment processor called Heartland Payment Systems was hacked
recently.
See:
http://www.usatoday.com/money/perfi/credit/2009-01-20-heartland-credit-c
ard-security-breach_N.htm
Incidentally, this has nothing to do with online/internet shopping.
This processor processes all kinds of transactions, including from swipe
terminals in retail stores, restaurants, etc.
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Hackers breach Heartland Payment credit card system
Updated 1/23/2009
By Byron Acohido, USA TODAY
Heartland Payment Systems (HPY) on Tuesday disclosed that intruders
hacked into the computers it uses to process 100 million payment card
transactions per month for 175,000 merchants.
Robert Baldwin, Heartland's president and CFO, said in a USA TODAY
interview that the intruders had access to Heartland's system for
"longer than weeks" in late 2008. The number of victims is unknown. "We
just don't have the information right now," Baldwin said.
Tech security experts said the breach could set a record. Retail giant
TJX lost 94 million customer records to hackers in 2007. With more than
100 million transactions per month, they could discover that several
months' worth of transactions were captured, says Michael Maloof, chief
technology officer at TriGeo Network Security.
Heartland processes card payments for restaurants, retailers and other
merchants. It discovered the hack last week after Visa and MasterCard
notified it of suspicious transactions stemming from accounts linked to
its systems. Investigators then found the data-stealing program planted
by the thieves.
"Our discussions with the Secret Service and Department of Justice give
us a pretty good indication that this is part of a group that appears to
have done security breaches at other financial institutions," said
Baldwin. "This is a very sophisticated attack." Once it sorts out the
matter, Heartland plans to notify each victim whose data were stolen to
comply with data-loss disclosure laws in more than 30 states, Baldwin
said.
"Cleaning up the mess could be potentially much more expensive than any
fines or penalties," says Michael Argast, senior analyst at security
firm Sophos.
Heartland's disclosure coincides with reports of heightened criminal
activities involving stolen payment card numbers. Security firm CardCops
has been tracking a 20% year-over-year increase in Internet chat room
activity where hackers test batches of payment card numbers to make sure
that they're active. "The numbers could have come from a processor, like
Heartland, or some other source that has access to a lot of customer
data but is not a retailer," says Dan Clements, CardCops president.
Also, Forcht Bank in Kentucky last week began issuing replacement debit
cards to 8,500 patrons, due to reports of fraudulent card activity.
"There are several other banks affected, and this is not isolated to
Forcht Bank customers," the bank said in a Jan. 12 statement to
customers.
_____________________________________
Susan
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Susan Otcenas
Team Estrogen, Inc.
http://www.TeamEstrogen.com
877-310-4592
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