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IN: Local debit cards affected in breach

Posted on April 23, 2010 by Dissent

One to watch….

Lafayette police say a national debit card security breach is hitting close to home.

According to police, this compromise has affected customers from a string of local restaurants and other businesses. And it’s hit several of the area’s banks and credit unions.

“I have spoken with a lot of the local financial institutions, and I know that right now the scale is over $100,000 that has affected local financial institutions,” said Lafayette Police Detective B.T. Brown.

Executives at Lafayette Bank and Trust and Purdue Employees Federal Credit Union confirmed that both institutions have seen an increase in fraudulent activity on debit cards.

Brown said he’s heard from many people in the Lafayette area who say they found fraudulent charges on their bank accounts after eating at some local restaurants.

“And it’s not solely isolated to restaurants,” he said. “There are other businesses involved. So that leads me to believe about the third party processor.”

That means it’s probably not linked to any criminal activity from local employees. In fact, Brown said this security breach has been seen across the country.

Read more on WLFI.

So….. is this a new breach or just a new wave of fraud related to an earlier breach such as Heartland where not all banks replaced cards? We need more info….

Category: Breach IncidentsID TheftU.S.

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