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CREDIT CARD SECURITY BREACH IN THE USA
Sydney, 21 June, 2005: The Australian Bankers’ Association (ABA) has contacted Visa, MasterCard and member banks to pool information regarding the breaches of customer security on their credit card accounts.
The key information as we understand the situation is:
- Australian bank computer systems have not been compromised as a result of the security breach in the USA. Australia’s electronic payments system is convenient, safe and efficient.
- An estimated 2000 credit card accounts have been identified as having been subjected to fraud. This includes numbers from only one card scheme. The other card scheme is yet to finalise its estimate.
- However, based on information from the card schemes, it is estimated that around 130,000 Australian customer account details may have been compromised through a computer hacking operation in the United States. These Australian customers had made a credit or debit card transaction in the USA.
- Even for customers whose account details have been compromised, the likelihood of subsequent fraud is very low and banks will continue to monitor these accounts. Banks have reported that they have closed accounts where fraud has been detected by their systems.
- In Australia, the guarantee rules mean that no credit card holder should lose any money as a result of this security breach. Any inconvenience associated with the computer theft is regretted. Cardholders are encouraged to check their statements for any unauthorised transactions and if they notice any discrepancies, contact the bank.
- The argument that banks should instantaneously report to the customer all security breaches is a matter the industry will continue to consider, but any automatic reporting requirement must be evaluated against the need for customer convenience, materiality and system integrity.
- Australia’s fraud detection systems have performed extremely well under difficult circumstances – evidenced by very low instance of fraud – however, as with all significant security incidents, appropriate systems investigations will be undertaken by the banks and credit card schemes.
- Investigations into the fraud are continuing.
For further information:
Heather Wellard
Director, ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
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