US hit with new retail security violation

By Dave Nixon

March 19, 2008

A security breach at an unspecified major US retailer may have uncovered yet further vast numbers of consumers to deception.

Almost 70 Massachusetts banks have been contacted by Visa and MasterCard concerning the incident, which tok place between December and March, the Massachusetts Bankers Association (MBA) said this week.

“The MBA estimates that hundreds of thousands of credit and debit cards owned by consumers in Massachusetts and northern New England states could be affected, and is urging consumers to monitor their accounts,” the bankers’ association said.

The biggest retailer violation up to now in the US happened over a year and a half period starting in 2005, when hackers gained admission to computer systems at Massachusetts-based TJX Companies, owners of T J Maxx, Marshalls and Bob’s Stores. That breach involved more than 94 million credit- and debit-card accounts.

The MBA did not make available any particulars on how the most recent breach occurred or name the “major retailer” responsible.

Nonetheless, MasterCard described the incident as a “potential security breach,” and issued a statement saying that the matter is being investigated by law enforcement. Because of the ongoing investigation, however, the credit-card company declined to provide additional details.

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