MasterCard and Visa Look Into Data Breach

http://www.nytimes.com/2012/03/31/business/mastercard-and-visa-look-into-possible-attack.html?hp

The breach occurred at Global Payments, an Atlanta company that helps Visa and MasterCard process transactions for merchants. One bank executive estimated that about one million to three million accounts could be affected. That does not mean that all those cards were used fraudulently, but that credit card information on the cardholders was exposed.

The bank official, who insisted on anonymity because the inquiry is at an early stage, said that Visa and MasterCard notified his company on Thursday, but that banks had been frustrated with the pace of disclosure by Global Payments. He said that Global Payments, which is one of the biggest transactions processors, had provided little information on where the breaches took place, how accounts were hacked and other details that could indicate which customers might be vulnerable.

Banks said that when they could identify victims, they would notify them and replace credit cards, if necessary.

While far from the largest breach of credit card data in recent years, the latest incident, which is being investigated by major banks and federal authorities as well as the card companies, underscores concerns about the vulnerability of electronic financial data.

As financial services companies have improved security over the last year, criminals have aimed at a specific part of the credit card system: the payment processors that act as a bridge between banks and retailers. Security consultants say that the sophistication of these attacks is increasing.