One of history's largest credit card compromises hits home
36 college cards compromised out of 600 mil in worldwide data breach last week
Chase Purdy
Issue date: 1/29/09 Section: News
Thirty-six college credit cards were reported compromised last week after what Business Office Director Kathy Caldwell called "the biggest hit on credit cards. Ever."
When a hacker weaseled into the Heartland Payment Systems database, 600 million credit cards became susceptible to credit fraud. Heartland Payment Systems, a processor of credit payments for other businesses, said representatives from Visa and MasterCard notified the company of suspicious transactions.
One of the compromised college cards was President Larry Arnn's.
The college uses Fifth Third Bank, who informed Vice President of Administration Rich Péwé of the incidents. Because of confidentiality agreements, Fifth Third gave vague reports of the situation, Caldwell said.
She said she learned of the situation after Péwé contacted her.
Péwé said Heartland Payment Systems caught the situation fairly quickly and the company traced the hacker.
After she learned of the situation, Caldwell sent an e-mail to the 36 individuals who carried endangered cards to inform them of the situation. She said her e-mail also included tips for card holders to help keep their card information secure.
"We closed all cards that were involved," she said. "The big thing is that we don't have any fraudulent activity."
Caldwell said new cards should arrive soon for those 36 employees whose cards were closed.
One year ago, fraudulent charges surfaced for two different college cards. More than $22,000 racked up until both card accounts closed. Caldwell said all issues with a card charged $7,000 were resolved, but she's still working with second card's issues.
All college cards are insured, she said.
Stories about the fraud incident appeared in USA Today and the New York Times.
When a hacker weaseled into the Heartland Payment Systems database, 600 million credit cards became susceptible to credit fraud. Heartland Payment Systems, a processor of credit payments for other businesses, said representatives from Visa and MasterCard notified the company of suspicious transactions.
One of the compromised college cards was President Larry Arnn's.
The college uses Fifth Third Bank, who informed Vice President of Administration Rich Péwé of the incidents. Because of confidentiality agreements, Fifth Third gave vague reports of the situation, Caldwell said.
She said she learned of the situation after Péwé contacted her.
Péwé said Heartland Payment Systems caught the situation fairly quickly and the company traced the hacker.
After she learned of the situation, Caldwell sent an e-mail to the 36 individuals who carried endangered cards to inform them of the situation. She said her e-mail also included tips for card holders to help keep their card information secure.
"We closed all cards that were involved," she said. "The big thing is that we don't have any fraudulent activity."
Caldwell said new cards should arrive soon for those 36 employees whose cards were closed.
One year ago, fraudulent charges surfaced for two different college cards. More than $22,000 racked up until both card accounts closed. Caldwell said all issues with a card charged $7,000 were resolved, but she's still working with second card's issues.
All college cards are insured, she said.
Stories about the fraud incident appeared in USA Today and the New York Times.
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