Visa Shuns GPN for Breach of Data - Analyst Blog
02 Aprile 2012 - 7:07PM
Zacks
Visa Inc. (V) has dropped Global
Payments Inc. (GPN) from its list of service providers
after detecting a cyber intrusion in the latter’s system that
likely threatens about 1.5 million customer accounts. This was the
second breach of card data by in a year.
Atlanta-based Global Payments aids both Visa and
MasterCard Inc. (MA) in processing credit card
transactions for merchants. Card giants such as Visa, MasterCard,
American Express Co. (AXP) and Discover
Financial Services (DFS) seek help of over dozen such
payment processors to reach out to the merchants, and hence these
payment processors are liable to offer a secure customer
transaction.
The breach of data was initially reported by
‘krebsonsecurity.com,’ which tracks cyber crimes, on Friday and had
estimated about 10 million card accounts to have been accessed by
the hackers. However, early last month, Global Payments had already
identified breach of card data on its customer accounts that were
causing theft of personal details of the customers along with
fraudulent transactions through their accounts. It is believed that
the hackers have infringed upon the Track 1 and Track 2 data that
incorporate details like customer names, card numbers, validation
codes and customer addresses.
Meanwhile, the federal and banking officials as well as Visa and
other credit card service providers have accused Global Payments
for presenting very less information about the places where the
breach of data took place. Moreover, other details regarding the
identification of the customer accounts that are sufficiently
exposed to cyber threat were kept veiled.
While Global Payments has been strictly recommended to revise
its cyber protection policies and systems, card giants have been
advised by the federal officials to enhance their security
compliances in order to avoid another data attack in future.
This is not the first such case wherein hackers have poached
into the cyber security zone. Industry giants such as
Citigroup Inc. (C) and Google
Inc. (GOOG) along with global organizations such as the
International Monetary Fund (IMF) and National Public Radio were
the primary ones who faced data attacks last year. In previous
years too, there have been reports of more such cases. The latest
breach of data issue once again raises question over the degree of
the data protection within the payment processing industry and also
increases the need for a foolproof regulation to mitigate risks
from frauds and money laundering.
AMER EXPRESS CO (AXP): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
GLOBAL PAYMENTS (GPN): Free Stock Analysis Report
MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
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