Author Topic: 45 MILLION credit cards?  (Read 478 times)

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Offline Grumpmeister

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45 MILLION credit cards?
« on: August 06, 2008, 12:04:00 PM »
When I heard about this last night I had the M&S voice going off in the background "This is not just identity theft..."

How the hell can major retail companies be so bleedin stupid as to have unsecured wireless networks for crying out loud.  Banghead

Quote
The US authorities have charged 11 people in connection with the theft of credit-card details in the country's largest-ever identity theft case.

They are accused of stealing more than 40 million credit and debit card numbers before selling the information.

They allegedly hacked into the computer systems of several major US retailers and installed software to access account details and passwords.

Prosecutors said the alleged fraud was an "international conspiracy".

'Increasing vulnerability'

Three of those charged are US citizens. The others come from Estonia, Ukraine, Belarus and China.

The 11 suspects are alleged to have obtained card numbers, account information and password details by driving around neighbourhoods and hacking into wireless equipment.

They are said to have then concealed the information in computer servers both in the US and Europe.

The Department of Justice said the scam caused "widespread" losses among banks, retailers and ordinary consumers - although it did not put a precise figure on the financial damage.

Retailers targeted included fashion store TJ Maxx and Barnes & Noble.

The justice department urged people worried about the safety of their personal information to contact their banks.

It said this was "the single largest and most complex identity theft case" ever to result in charges being brought.

"This case highlights our increasing vulnerability to the theft of personal information," said US Attorney General Michael Mukasey.

"Cases like these send a clear message to those who might be tempted to abuse our computer networks to steal information and harm law-abiding people and businesses.

"If you do, we will track you down wherever you are in the world, we will arrest you and we will send you to jail."

Global investigation

The accused targeted at least nine retail chains, prosecutors allege.

Those affected were TJX Corporation - which operates the TJ Maxx chain of shops - BJ's Wholesale Club, Barnes and Noble, Sports Authority, Boston Market, Office Max, Dave and Busters, DSW shoe stores and Forever 21.

TJX Corporation, which has shops around the world, revealed that it had been the victim of a massive identity fraud last year.

US Attorney General Michael B Mukasey described the scale of the fraud
More than 45 million credit cards were at risk of being compromised as a result of a breach of its computer systems which began in 2005.

The firm has since reached an agreement to compensate banks which are part of the Visa and Mastercard networks for the cost incurred in replacing cards and dealing with fraud inquiries.

Law enforcement agencies around the world, including in Turkey and Germany, co-operated with the investigation.

There are concerns that identity theft is costing the US billions every year.

In 2006, the Bush administration set up an identity theft task force comprising 17 federal departments and agencies.
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Offline Snoopy

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Re: 45 MILLION credit cards?
« Reply #1 on: August 06, 2008, 12:12:17 PM »
Because, as the man on the wireless explained, they have yet to catch up with the technology.
It's a matter of profit margins, shareholders and investment.
They thought they had it covered but as usual the criminals were at least two steps ahead.

The US are, apparently, several years behind us on Chip and Pin so most of the cards accessed are Yanks with old fashioned magentic strips and nowt else.

If, like me, you deal mainly in cash you won't have a problem.  whistle:
The only card I have nowadays is a debit card on one bank account that never has more than £200 in it. I have no credit cards thus my maximum possible loss is limited to £200.
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Offline Uncle Mort

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Re: 45 MILLION credit cards?
« Reply #2 on: August 06, 2008, 12:13:58 PM »
Is it really identity theft though? It seems to me that the phrase has become lazy shorthand for all types of financial scams.  

Offline Snoopy

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Re: 45 MILLION credit cards?
« Reply #3 on: August 06, 2008, 12:18:33 PM »
Is it really identity theft though? It seems to me that the phrase has become lazy shorthand for all types of financial scams.  

I would agree Uncle but I guess to the Yanks, to whom their Credit Cards are their identity and a measure of their worth (ie the more cards they have the better they expect to be regarded) it could be identity theft.
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Offline Uncle Mort

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Re: 45 MILLION credit cards?
« Reply #4 on: August 06, 2008, 12:31:50 PM »