Online Credit Card Processor: ‘No Security Breach’

The FBI continues to investigate an international fraud scheme that has affected hundreds of small business accounts.

Sellers of products such as Mary Kay cosmetics say thieves wrote checks on their accounts, ranging from $24.95 to $39.99.

“I was informed that the $39.95 charge was for a subscription to an adult Web site,” said Julia Goldsmith, a Mary Kay Beauty Consultant from Greenville. “I had not subscribed to any adult Web site.”

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But Utah-based credit-card processor ProPay said it is aware of the fraud scheme and has posted a disclaimer on its Web site. The company insists there has been no security breach on its part.

“We have checked out the accounts of affected individuals to see if there were any account takeover attempts. We have also assessed our system,” said ProPay General Counsel Greg Pesci. “There is no indication that ProPay has experienced any data breach or compromise.”

Pesci said less than one percent of ProPay customers were victims of the fraud scheme which, he said had to have originated with their individual banks.