SECUR> Hacker breaches credit card security

From: Gleason Sackmann <gleason@xxxxxxxxxxxxxxx>
To: NetHappenings <nethappenings@xxxxxxxxxxxxx>
Date: Tue, 18 Feb 2003 14:41:09 -0600
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Net Happenings - From Educational CyberPlayGround
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Tuesday, 18 February, 2003, 16:17 GMT
Hacker breaches credit card security
http://news.bbc.co.uk/2/hi/business/2774477.stm

The companies said none of the information was used in a fraudulent way
A computer hacker has gained access to more than 5 million Visa and
Mastercard credit card accounts in the US.
The two companies said on Tuesday that none of the information obtained,
which would include credit card numbers, was used in a fraudulent way.
The only way to eradicate the risks would be to reissue all 5 million... cards


Peter Lilley, business crime expert

But a UK-based business crime expert warned account holders could still be
at risk if their cards were not reissued.
Visa and Mastercard said the hacker breached the security system of a
company that processes credit card transactions on behalf of merchants.
Numbers of credit cards can be used to make payments, such as buying plane
tickets or hiring cars.
Both Visa and Mastercard operate zero liability policies, which protect
card holders from having to pay for any unauthorised or fraudulent charges.

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Card holders at risk?

Peter Lilley, a fellow of the UK Chartered Institute of Banking and author
of various books on hacking and business crime, said some hackers attack
computer systems just to prove the point that the system is insecure.
But he told BBC News Online that account holders of the hacked credit cards
could still be at risk.
"To gain access to 5 million different accounts is a lot.
 Although fraud is at an all time low, high profile companies ... will
always be targeted by criminals -Visa and our vendors are no exception


Visa statement

"The bottom line is, when somebody has access to 5 million numbers, it puts
those accounts at risk in the future.
"Strictly speaking, the only way to eradicate the risks would be to reissue
all 5 million account holders with new cards."
But he also admitted that scenario posed all sorts of logistical problems.
The Visa and Mastercard credit cards are issued by numerous financial
institutions.
"And each institution could end up taking a different approach," Mr Lilley said.


Banks warned

A spokeswoman for Visa in the UK could not comment on any plans to reissue
the compromised cards in the US.
But a UK spokesman for Mastercard said that decision was up to the card
issuers.
"Although fraud is at an all time low, high profile companies, government
agencies, internet programs and websites will always be targeted by
criminals - Visa and our vendors are no exception.
"It is for this purpose that Visa has global fraud prevention, detection
and avoidance programs and is extending secure payments in the virtual
marketplace," Visa said in a statement.


Immediate alert

More than 560 million Visa and Mastercard cards circulate in the US.
Mastercard said it informed its members two weeks ago that more than 2
million accounts had been hacked into.
Visa said about 3.4 million of its accounts were accessed by the computer 
hacker.
Both companies said they immediately alerted the affected banks that issued
the cards.
"Visa's fraud team immediately notified all affected card issuing financial
institutions, and is working with the third-party payment card processor to
protect against the threat of a future intrusion," the company said in a 
statement.
The firms are also working with US law enforcement officials.

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SECUR> Hacker breaches credit card security

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