Avalanche of Customers Swarms BofA After Card Security Breach

Bob Styran, IT audit expert
March 29, 2011 /

The past days have been full of complaints from customers of Bank of America whose every single transaction has been massively denied by the system, possibly due to an unidentified card security breach according to officials.

The most common instance indicating that BofA may be in a card security compromise involves declined debit cards in several branches of the bank.

Authorities believe the compromise has something to do with skimming, which inAudit notes to be a kind of mobile theft in which fraudsters put up a magnetic device on Automated Teller Machines to steal highly confidential information from ATM cards.

Security researcher Brian Krebs previously made an in-depth study of this tactic that compromises card security. He explains that skimmers would access the card data inserted into ATMs and duplicate it for fraudulent uses, which could happen in a matter of minutes and in real-time, leaving no time for police authorities to prevent the breach.

According to Bank of America, the amount of lost cash has already reached hundred thousand dollars. To address further card security, BofA management released an advisory for customers to block their cards for the meantime while they are being replaced temporarily.

BofA is still underway in determining what exactly happened and how the card security breach spread on that scale.

In a statement released through a local news network, BofA said that as the possible skimming tactic continues to breach customers’ card security its staff never ceased to advise them to halt all their card transactions.

The Payments Authority in Michigan remains clueless whether the card security breach occurred internally or an outside intervention caused the compromise. Authorities could not confirm how far the breach has gone.

For the time being BofA officials are probing into the whereabouts of the lost money while spokesperson Diane Wagner insists that Bank of America has not been hacked.

Wagner was quoted as saying that if any potential card security breach of BofA customers could be detected the bank will accordingly notify them and reissue their card as a standard operating procedure of the company.

 

Share your opinion