Posts Tagged: chip-and-signature


2
Mar 16

Credit Unions Feeling Pinch in Wendy’s Breach

A number of credit unions say they have experienced an unusually high level of debit card fraud from the breach at nationwide fast food chain Wendy’s, and that the losses so far eclipse those that came in the wake of huge card breaches at Target and Home Depot.

wendyskyAs first noted on this blog in January, Wendy’s is investigating a pattern of unusual card activity at some stores. In a preliminary 2015 annual report, Wendy’s confirmed that malware designed to steal card data was found on some systems. The company says it doesn’t yet know the extent of the breach or how many customers may have been impacted.

According to B. Dan Berger, CEO at the National Association of Federal Credit Unions, many credit unions saw a huge increase in debit card fraud in the few weeks before the Wendy’s breach became public. He said much of that fraud activity was later tied to customers who’d patronized Wendy’s locations less than a month prior.

“This is what we’ve heard from three different credit union CEOs in Ohio now: It’s more concentrated and the amounts hitting compromised debit accounts is much higher that what they were hit with after Home Depot or Target,” Berger said. “It seems to have been been [the work of] a sophisticated group, in terms of the timing and the accounts they targeted. They were targeting and draining debit accounts with lots of money in them.”

Berger shared an email sent by one credit union CEO who asked not to be named in this story:

“Please take this Wendy’s story very seriously. We have been getting killed lately with debit card fraud. We have already hit half of our normal yearly fraud so far this year, and it is not even the end of January yet. After reading this, we reviewed activity on some of our accounts which had fraud on them. The first six we checked had all been to Wendy’s in the last quarter of 2015.”

All I am suggesting is that we are experiencing much high[er] losses lately than we ever did after the Target or Home Depot problems. I think we may be end up with 5 to 10 times the loss on this breach, wherever it occurred. Accordingly, please put this story in the proper perspective.”

Wendy’s declined to comment for this story.

Even if thieves don’t know the PIN assigned to a given debit card, very often banks and credit unions will let customers call in and change their PIN using automated systems that ask the caller to verify the cardholder’s identity by keying in static identifiers, like Social Security numbers, dates of birth and the card’s expiration date.

Thieves can abuse these automated systems to reset the PIN on the victim’s debit card, and then use a counterfeit copy of the card to withdraw cash from the account at ATMs. As I reported in September 2014, this is exactly what happened in the wake of the Home Depot breach. Continue reading →


5
Oct 15

Trump Hotel Collection Confirms Card Breach

The Trump Hotel Collection, a string of luxury hotel properties tied to business magnate and Republican presidential candidate Donald Trump, said last week that a year-long breach of its credit card system may have resulted in the theft of cards used at the hotels. The acknowledgement comes roughly three months after this author first reported that multiple financial institutions suspected the hotels were compromised.

Trump International Hotel and Tower in Chicago.

Trump International Hotel and Tower in Chicago.

In a Web site created to share details about the hack, The Trump Hotel Collection said the breach affects customers who used their credit or debit cards at the hotels between May 19, 2014, and June 2, 2015.

“While the independent forensic investigator did not find evidence that information was taken from the Hotel’s systems, it appears that there may have been unauthorized malware access to payment card information as it was inputted into the payment card systems. Payment card data (including payment card account number, card expiration date, and security code) of individuals who used a payment card at the Hotel between May 19, 2014, and June 2, 2015, may have been affected.

The Trump compromise is just the latest in a long string of credit card breaches involving hotel brands, restaurants and retail establishments. In March, upscale hotel chain Mandarin Oriental disclosed a compromise. The following month, hotel franchising firm White Lodging acknowledged that, for the second time in 12 months, card processing systems at several of its locations were breached by hackers.

On Sept. 25, this author first reported that the Hilton Hotel chain is investigating reports of a pattern of card fraud traced back to some of its properties.
Continue reading →


1
Jul 15

Banks: Card Breach at Trump Hotel Properties

The Trump Hotel Collection, a string of luxury hotel properties tied to business magnate and now Republican presidential candidate Donald Trump, appears to be the latest victim of a credit card breach, according to data shared by several U.S.-based banks.

Trump International Hotel and Tower in Chicago.

Trump International Hotel and Tower in Chicago.

Contacted regarding reports from sources at several banks who traced a pattern of fraudulent debit and credit card charges to accounts that had all been used at Trump hotels, the company declined multiple requests for comment.

Update, 4:56 p.m. ET: The Trump Organization just acknowledged the issue with a brief statement from Eric Trump, executive vice president of development and acquisitions: “Like virtually every other company these days, we have been alerted to potential suspicious credit card activity and are in the midst of a thorough investigation to determine whether it involves any of our properties,” the statement reads. “We are committed to safeguarding all guests’ personal information and will continue to do so vigilantly.”

Original story:

But sources in the financial industry say they have little doubt that Trump properties in several U.S. locations — including Chicago, Honolulu, Las Vegas, Los Angeles, Miami, and New York — are dealing with a card breach that appears to extend back to at least February 2015.

If confirmed, the incident would be the latest in a long string of credit card breaches involving hotel brands, restaurants and retail establishments. In March, upscale hotel chain Mandarin Oriental disclosed a compromise. The following month, hotel franchising firm White Lodging acknowledged that, for the second time in 12 months, card processing systems at several of its locations were breached by hackers.

It is likely that the huge number of card breaches at U.S.-based organizations over the past year represents a response by fraudsters to upcoming changes in the United States designed to make credit and debit cards more difficult and expensive to counterfeit. Non-chip cards store cardholder data on a magnetic stripe, which can be trivially copied and re-encoded onto virtually anything else with a magnetic stripe. Continue reading →