Hack affects 1.5 million

Global Payments Inc. says no fraud reported yet as result of data breach

Tue., April 3, 2012

Tiffany Hsu Los Angeles Times

What you should do

The latest security breach involving credit-card data serves as an important reminder for cardholders to take precautions.

Being part of a breach makes an individual six times more likely to be the victim of fraud or identity theft, according to Javelin Strategy & Research.

Here’s what to do if you suspect your data has been breached:

• Be extra careful and watch for signs of possible trouble. When hackers glean consumer information through attacks like the breach at Global Payments, they can use it to mine more data online about those individuals. That makes it easier to send targeted emails that mimic messages from a consumer’s bank – a process known as “spear phishing.”

• Keep a close eye out for unexpected charges on your financial statements. Even a $1 charge could be a sign that a thief has your account number and is testing to see if you notice anything unexpected. If you spot any unauthorized purchases, a call to the credit card company will start an investigation and the questionable purchases will be reversed under most circumstances.

• Protect yourself from online fraud and identity theft with browser security software on your computers and mobile devices. If you already have anti-virus software, make sure to update it. Be sure to use the most recent version of your Internet browser. Older versions can have security weaknesses that leave you at risk. Also, set your anti-virus and anti-spyware software to auto-update and use an Internet firewall.

Associated Press

LOS ANGELES – Data from up to 1.5 million credit and debit cards from all major card brands, including MasterCard, Visa and Discover, may have been stolen in a data breach at processing firm Global Payments Inc.

But so far, the company does not know of any fraudulent transactions on infiltrated accounts, said Chief Executive Paul R. Garcia in a conference call with analysts on Monday. The hack was confined to North America, he said.

And while card numbers may have been swiped, the company said cardholder names, addresses and Social Security numbers are safe.

“It is crucial to understand that this incident does not involve our merchants or their relationships with their customers,” Garcia said, adding that the event was the company’s first run-in with a security breach.

On Friday, Visa and MasterCard warned of a possible intrusion into cardholder accounts – a break-in that Global Payments confirmed later in the day. The company said it discovered the problem about three weeks ago at “a handful of servers” and immediately informed its processing partners.

Visa Inc. has since removed Global Payments from a registry of partners who meet data security standards, though the company continues to process Visa transactions. MasterCard posted tips for customers to protect their personal data.

Both said last week that their own systems were not compromised. The U.S. Census Bureau estimates that, this year, nearly 1.2 billion credit cards and 530 million debit cards will be in circulation throughout the country.

Global Payments launched a website for questions at www.2012infosecurityupdate.com.

Hack affects 1.5 million

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