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June 18, 2005

Security Lapse Laid to Tucson Company

Thomas Stauffer, Joe Burchell and Lynda Edwards report for Tucson's Arizona Daily Star on yesterday's announcement by MasterCard that the Tucson operations center of CardSystems Solutions was responsible for a security breach that could have exposed information on up to 40 million cardholders.

The company's technology staff identified the security breach on May 22, said Linda Ford, CardSystems' vice president and general counsel.

The FBI was notified the next day, and the bureau instructed the company to discuss the breach only on a "need-to-know" basis, Ford said at an impromptu press briefing Friday outside the company's office.

MasterCard gave CardSystems no warning of its Friday announcement, Ford said.

Also in today's morning papers, Carrie Kirby and Jenny Strasburg report for the San Francisco Chronicle on fresh questions being raised as a result of yesterday's announcement of a security breach involving payment card information on up to 40 million consumers.

In this case, victims should not be at risk for identity theft, because the information stolen appears to be transaction data taken from the strip on the back of cards, which generally does not include sensitive details such as Social Security number and date of birth that can be used to open new accounts in a person's name.

Beware the Phishing "Double Bluff"

Joe Morgan reports for the UK's Times of London on a recent phishing attack against customers of Barclays Bank.

Internet fraudsters are using an audacious double bluff to rob people of their cash: spam e-mails give warning of the risks of responding to unsolicited mail that asks customers to disclose internet banking log-in details — before inviting would-be victims to do just that.

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