45 million Debit, Credit Cards stolen from TJMaxx

[Balta1701]

Well, I still remain quite happy that no one in the government has bothered to step in and create legislation helping to clean up the identity theft problem in this country. Banks just need more money!

 

Seriously, businesses and private entities really need to face much, much stronger punishments for failing to secure people's personal data. This is just obnoxious.

At least 45.7 million credit and debit card numbers were stolen by hackers who accessed the computer systems at the TJX Cos. at its headquarters in Framingham and in the United Kingdom over a period of several years, making it the biggest breach of personal data ever reported, according to security specialists.

 

While details are still sketchy, TJX said unauthorized software placed on its computer systems stole at least 100 files containing data on millions of accounts from systems that process and store transaction information in Framingham and Watford, United Kingdom. Moreover, TJX believes the hackers last year had the capability to steal payment card data from its Framingham system as transactions were being approved. Even the files TJX tried to protect through encryption may have been compromised because the company believes the hackers had access to the decryption tool.

 

"It's the biggest card heist ever," said Avivah Litan of technology consulting firm Gartner Inc. " It's done considerable damage."

The LAT Here gives some advice i've been following for years; don't trust debit cards at all.

"We tell people to stop using debit cards for shopping," said Beth Givens, director of the nonprofit Privacy Rights Clearinghouse in San Diego. "If you are a victim of someone who uses your debit card data, the money comes immediately out of your bank account."

 

That's what happened to Marilyn Key of Pasadena when she was on vacation in Europe.

 

"I usually use my credit card," she said. "I just use my debit card for little things."

 

One of those times was at a small market on her trip. "I only found out that the information on the card had been stolen when I had no money left in my account," Key said.

 

In all, $4,000 was stolen. She eventually got it all back from the card issuer.

 

But in some cases, that can take weeks.

 

"We have heard of cases when the bank says it has to investigate the loss," Givens said. "The victim might be left broke while that's taking place."

 

That doesn't happen with credit cards because purchases initially are funded by the card issuer. As a result, the victim usually doesn't pay out the money before noticing the loss.

 

Another problem with debit cards is that the laws governing them in case of theft are less protective than for credit cards. The rules are especially tough on procrastinators.

 

The debit card holder is responsible for losses of as much as $50 if the financial institution is notified of the theft within two days of it being discovered. After that, the user is responsible for losses of as much as $500.

 

And if the theft isn't reported within 60 days, the debit card holder is legally responsible for all losses after that period.

 

In contrast, the maximum loss that the victim of a credit card theft will suffer is $50, as long as the loss is reported within 60 days.

Edited March 30, 2007 by Balta1701