Keep in mind that the Citibank story I told you about losing backup tapes via UPS ISN’T the company they’re referring to below that lost 42,000,000 credit card numbers, SSN’s, addresses, phone numbers, etc. – that was a different incident happening a month ago or so.
“Last week, Mastercard announced that up to 40,000,000 credit card numbers may have been compromised by one of their processing companies. Today, the New York Times (registration, along with first born child, required) is reporting that the company in question, CardSystems Solutions, should not have been retaining that data to begin with. John M. Perry, CEO of the processor in question, claims the data was merely being kept for ‘research purposes.’ The number of compromised Master Card accounts has been revised downward to about 68,000, with another 132,000 possibly compromised accounts belonging to Visa, American Express, and other companies.”
It’s nice to see that our credit card companies hold our sensitive, private data in such high regard. Makes me feel all warm and fuzzy inside. If data in a vendor’s system is compromised, Visa and Mastercard will charge fines upward of a hundred thousand dollars per violation, and by the time a third violation occurs, your place of business may be denied use of credit card services permanently.
That’s a good thing for everyone, but when crap like this happens it ticks me off. Credit Card companies are (correctly) requiring the strictest standards for storing cardholder data by vendors, but at the same time they themselves are losing 40 million cardnumbers, losing unencrypted backup tapes in shipping, etc. What ticks me off is that if I’m a vendor and I screw up and lose a credit card number into the wild, I get fined 100K. If they lose 40 million cards, what are they gonna do, fine themselves?
Then of course you have to worry about “ok, out of the total of a possible 80,000,000 credit card numbers and sensitive data that has been lost – is mine one of them?”. It’s not like they’re going to call you and say “hey, by the way, we screwed up and lost your card number, SSN, home address, phone number, etc….um….oops?”. So basically, no matter how careful you are with your credit card number, the credit card companies themselves seem to have proved themselves your biggest danger for CC fraud. Nice.
