MasterCard Worldwide today announced it has reached a settlement with Heartland Payment Systems (Heartland) to resolve claims by MasterCard and its issuers in connection with Heartland’s previously announced data security breach. The settlement agreement calls for Heartland to fund up to $41.4 million of “alternative recovery offers” to be made to eligible MasterCard card issuers…
Category: Financial Sector
(RBS follow-up) Hong Kong man jailed for role in 10-million-US-dollar scam
Another follow-up to previous coverage here: A former policeman in Hong Kong began a four-year jail sentence Tuesday for his part in a global scam in which 10 million US dollars was stolen using cloned credit cards. Cheung Hoi-wing, 40, was recruited as one of five Hong Kong “cashers” in the international plot masterminded by…
Los Angeles Firemen’s CU Has Data Breach
David Morrison reports: The $889 million Los Angeles Firemen’s Credit Union has notified some of its more than 28,000 members that private information may have been compromised. The May 10 letter from CEO Michael Maestro said that “an extremely small percentage” of member files were “not properly moved” when the CU relocated from an old…
Romanians charged in $182G bank fraud scheme
Amanda Pinto reports: Four Romanian citizens have been indicted on charges related to a multi-state ATM scam through which they allegedly installed “skimming devices” and pinhole cameras in order to steal customers’ banking information. Two of the men employed the scam at People’s United Bank in Madison in September 2009, and used the information to…
Maryland Attorney General Settles with Mid Atlantic Processing
Attorney General Douglas F. Gansler announced that his Consumer Protection Division has entered into a settlement with MAP, LLC, a payment processing company formerly doing business as Mid Atlantic Processing, and Martin A. Taylor and Rony Natanzon, two officers of the company. The Division alleged that when Mid Atlantic Processing closed its Owings Mills office…
Heartland breach expenses pegged at $140M — so far
Jaikumar Vijayan reports: The costs to Heartland Payment Systems Inc. from the massive data breach that it disclosed in January 2009 appear to be steadily adding up. Quarterly financial results released by Heartland last week show that the card payment processor has accrued $139.4 million in breach-related expenses. The figure includes a settlement totaling nearly…