Saturday, June 18, 2011

Citigroup says 360,000 affected by hackers

Citigroup Inc. says hackers stole the account information in a recent data breach of more than 360,000 U.S. credit card customers, much higher than initially thought.

Citi said last week that about 1 percent of its credit card customers had account information hacked online. But the actual number of customers affected was thought to be about 200,000. That's because Citi's annual report last year said the company had roughly 21 million credit card customers.

The bank said late Wednesday that it discovered that hackers accessed the data on May 10.

The hackers accessed account numbers and contact information, including e-mail addresses, but not social security numbers, dates of birth, card expiration dates or card security codes.

Sources : The Associated Press, Hong Kong | Thu, 06/16/2011 1:05 PM

Bank Indonesia (BI) : banks that offer credit cards to review their security

The central bank, Bank Indonesia (BI), has urged banks that offer credit cards to review their security system amid alarming police findings on counterfeit cards.
BI said Thursday it expected banks to improve security by moving to electronic chip technology no later than the end of 2010.
Currently many banks still use magnetic strip technology.
"We have intensified discussions with credit card issuers and principals, Visa and MasterCard," BI deputy governor Budi Rochadi said during a press conference.
"And we expect credit card issuers to review whether their security system is still valid."
The police found about 9,000 counterfeit credit cards during a raid earlier this month.
They also found 7.2 million credit card data, including card holder's names, card numbers and expiry dates. About 20 percent of the data are of Indonesian card holders. These data are often used for unauthorized transactions through the Internet.
Budi said BI had coordinated with the police, the Attorney General's Office (AGO) and the Indonesian Credit Card Associations (AKKI), to investigate the matter.
The total value of credit card fraud in 2007, according to AKKI, was about Rp 35 billion (US$3.86 million), from total credit card transactions worth Rp 72.7 trillion.
To appease consumers, AKKI said all of its 21 members would bear losses inflicted and it would continue to improve security.
About 50 percent of banks with credit cards had started to shift to chip technology, from magnetic-stripe technology, which has been in the industry for 40 years.
A chip-based card is distinguishable due to the presence of a SIM-card look-alike chip installed on the surface of the credit card.
"It cannot be done all at once as it needs a large amount of money," said AKKI's Budi Setiawan.
Therefore, he said, credit cards issuers chose to issue a chip-based card to new card holders only, or by replacing a magnetic-stripe card with a chip-based card only on expiry.
According to Setiawan, a magnetic-stripe card costs about 50 U.S. cents, while a chip-based card costs between $1 and $2.
Chip-based cards can only be read through specific electronic data capture (EDC) technology.
Most EDC in the country, however, could now read chip-based cards as well.
Setiawan said chip-based cards had multiple encryption layers, which made them difficult to decrypt.
Chips were now the safest method for credit cards worldwide.

Sources : Aditya Suharmoko, The Jakarta Post, Jakarta | Fri, 02/29/2008 1:30 AM
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