Feeds

Aussie banks cancel 10,000 credit cards

No you didn’t exceed your limit, we can’t secure our data

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

The Australian banking system has been rocked by a mystery security breach which caused the immediate cancellation of over 10,000 cards on Friday. The Commonwealth Bank and the St George Bank initiated the alert via SMS to customers notifying them that their cards would be cancelled as part of precautionary measures.

The Commonwealth Bank said in a statement that it was alerted to comprised security for credit card data following the report of a potential data breach by an undisclosed Australian merchant (serviced by another bank). However, none of the affected banks have revealed the cause or detailed the exact nature of the security breach.

The Commonwealth Bank has cancelled 8,000 cards while Bendigo Bank has also reportedly cancelled 2,300 cards. Westpac and the National Australia Bank (NAB) alerted customers of the fraudulent activity but said that only a small amount of customers - fewer than 1,000 - had been affected.

The affected banks reissued credit cards while monitoring all transactions for potential fraud. ANZ Bank, which uses Falcon fraud detection software, did not notify its customers about the incident.

The flow-on affect of the card cancellations means that scheduled bill payment transactions and direct debts for thousands of merchants will also be affected.

The security breach is the latest in a run of technical glitches to hit the banking sector.

Earlier in the month an air conditioning fault at a data centre immobilized the Westpac ATM, EFTPOS and online banking system for a day. The outage also affected retail transactions and national transport networks such as CityRail which use Westpac EFTPOS terminals.

Last month, thousands of NAB customers were blocked from receiving their scheduled pay, a data error which extended to payrolls that NAB processes for other banks, including Macquarie Bank and HSBC. While in March, Commonwealth Bank ATMs spat out “free money”, after a routine maintenance drill had crashed its online and phone banking system. ®

Internet Security Threat Report 2014

More from The Register

next story
FYI: OS X Yosemite's Spotlight tells Apple EVERYTHING you're looking for
It's on by default – didn't you read the small print?
Russian hackers exploit 'Sandworm' bug 'to spy on NATO, EU PCs'
Fix imminent from Microsoft for Vista, Server 2008, other stuff
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Microsoft pulls another dodgy patch
Redmond makes a hash of hashing add-on
NOT OK GOOGLE: Android images can conceal code
It's been fixed, but hordes won't have applied the upgrade
'LulzSec leader Aush0k' found to be naughty boy not worthy of jail
15 months home detention leaves egg on feds' faces as they grab for more power
China is ALREADY spying on Apple iCloud users, claims watchdog
Attack harvests users' info at iPhone 6 launch
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.