Feeds

Visa cuts CardSystems over security breach

Didn't do nicely

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

Visa USA has dumped a card processing firm blamed for a security breach affecting anything up to 40m credit card numbers from MasterCard, Visa and other card issuers. Payment processor CardSystems Solutions admitted it wasn't supposed to hold the compromised data, so it comes as no great surprise that Visa USA has stopped allowing it to process transactions on its behalf.

Security vulnerabilities at CardSystems left unencrypted credit card data - including customers names, card numbers and cvv (security) codes but not customer addresses - open to attack. Records "known to have been stolen" covered roughly 200,000 of the 40m potentially compromised credit card accounts. CardSystems only held the data in order to carry out unauthorised research into why particular transactions had registered as unauthorised or uncompleted. Visa dropped CardSystems after independent investigators said the processing firm has failed to introduce proper controls following the breach, which become public in June.

"CardSystems has not corrected, and cannot at this point correct, the failure to provide proper data security for those accounts," said Tim Murphy, Visa's SVP for operations in a memo leaked to The New York Times. "Visa USA has decided that CardSystems should not continue to participate as an agent in the Visa system."

Visa has given 11 banks until the end of October to switch payment processing firm. The New York Times reports it's unclear if MasterCard and American Express will take similar disciplinary action, which would threaten the future of the payment processing firm. CardSystems said it hopes to persuade Visa USA to reconsider its decision.

The security breach at CardSystems came to light after MasterCard and an unnamed bank, together with computer forensics firm Ubizen, traced unusually high levels of fraud identified in mid-April back to problems at CardSystems. CardSystems said it reported the security breach to the FBI in May 23, the day after security experts nailed the source of the security breach. MasterCard, which went public on the problem on 17 June, is the only card issuer thus far to trace specific instances of fraud back to CardSystems. However other card issuers may been hit and the scope of fraudulent activity caused by the breach remains unclear. ®

Related stories

MasterCard fingers partner in 40m card security breach
Unauthorised research opened door to MasterCard breach
MasterCard hack spawns phishing attack
How much does a security breach actually cost?

Secure remote control for conventional and virtual desktops

More from The Register

next story
One HUNDRED FAMOUS LADIES exposed NUDE online
Celebrity women victimised as Apple iCloud accounts reportedly popped
Rubbish WPS config sees WiFi router keys popped in seconds
Another day, another way in to your home router
Goog says patch⁵⁰ your Chrome
64-bit browser loads cat vids FIFTEEN PERCENT faster!
NZ Justice Minister scalped as hacker leaks emails
Grab your popcorn: Subterfuge and slur disrupts election run up
NIST to sysadmins: clean up your SSH mess
Too many keys, too badly managed
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
Researchers camouflage haxxor traps with fake application traffic
Honeypots sweetened to resemble actual workloads, complete with 'secure' logins
Attack flogged through shiny-clicky social media buttons
66,000 users popped by malicious Flash fudging add-on
New Snowden leak: How NSA shared 850-billion-plus metadata records
'Federated search' spaffed info all over Five Eyes chums
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.