Securing Card Data Isn't an Easy Sell

Jaikumar Vijayan   Today’s Top Stories   or  Other Security Stories  

Advances in SSL and Certificate Management Bringing Order and Security to your Mobile Workforce: Corporate Mobility Policy and Device Management Achiving Compliance Through Good Governance 7 Requirements of Data Loss Prevention Ponemon Study: How much does a data breach "cost"? E-LOAN maintains reputation as a privacy leader with Symantec Data Loss Prevention solutions Virtual Reality SaaS Solutions for Remote Systems Management Mobility @ the Speed of Business Sign up to receive Security Resource Alerts

December 19, 2005 (Computerworld) -- Recent data compromises, such as one involving the Sam's Club wholesale chain, highlight the challenges that credit card companies face in enforcing the security standards that went into effect last July for all businesses processing credit transactions.
Sam's Club, a division of Wal-Mart Stores Inc., said in a statement issued this month that it was investigating a security breach that had exposed credit card data belonging to an unspecified number of customers who purchased gas at the company's stations between Sept. 21 and Oct. 2.
Beyond saying that its internal systems and databases weren't compromised, Sam's Club didn't elaborate on how the card information was accessed. Last week, company officials didn't respond to repeated requests for comment.
But Corinne Sherman, vice president of card services at the Pennsylvania Credit Union Association in Harrisburg, said that based on alerts from MasterCard International Inc. and Visa U.S.A. Inc., Sam's Club appears to have been storing customer and account information from both tracks of the magnetic stripe on the back of cards. That information could be used by data thieves to create counterfeit cards that could then be used to commit fraud, Sherman said.
Especially troubling is the fact that a very large number of merchants still appear to be capturing and storing the full magnetic stripe information off credit and debit cards even though doing so violates the new Payment Card Industry (PCI) security standards, said Ann Davidson, payment systems risk manager at CUNA Mutual Group, a Madison, Wis.-based company that provides insurance and financial services to credit unions.
Of the more than 300 fraud alerts that MasterCard and Visa have each issued this year, the majority involved cases where magnetic stripe information was stored after a transaction, Davidson said.
"This is in direct violation of card association rules," Davidson said. "I would love to know why merchants are doing this." She added that CUNA Mutual has had several meetings with MasterCard and Visa to discuss the data storage issue.
In April, the insurer filed a lawsuit against BJ's Wholesale Club Inc. seeking to recover losses incurred as a result of a security breach that compromised 40,000 credit and debit cards. The lawsuit, which BJ's is contesting, alleges that the retailer stored account and customer information in violation of MasterCard's and Visa's regulations.
Many of the problems stem from the older point-of-sale systems that some merchants use to process card transactions, said Michael Petitti, a senior vice president at Ambiron TrustWave, a Chicago-based provider of security and PCI compliance services to the credit card industry. The POS systems often capture information that the merchants operating them don't even know about, Petitti said.

Continued...
1 | 2 | NEXT  

Print this Story

Send Us Feedback

E-mail this Story

Digg this Story

Slashdot this Story

Sidebar: Card Data Breaches Exact a Heavy Toll on Credit Unions

Securing Card Data Isn't an Easy Sell

"Welcome to a special IT Blogwatch EXTRA: as Richi Jennings watches bloggers' reactions to the Russian hackers who claim to..." Read more... "As if taxpayers needed another reason to scorn the IRS. I read yesterday that the inspector general review of several..." Read more... Read more Security posts or See all Blogs

Feds considering changes to H-1B application process in wake of report Exploit code loose for six-month-old Windows bug With market meltdown, which tech firms become predator or prey? More top stories...

The Grill: Privacy is a thing of the past, says private investigator Report: World Bank servers breached repeatedly Apple asks judge to make iPhone lawsuit moot

Health hazards for IT workers -- how that desk job wears your body down Too much junk food, too little exercise and a 24/7 tether to technology? Your body ain't happy, friend. Let us count the pains. NASA robot sends back evidence it's snowing on Mars Instruments on the surface of Mars have detected falling snow that is likely evaporating before it reaches the planet. Wall Street's collapse may be computer science's gain One positive development stemming from the collapse of Wall Street may be a boost in interest in computer science and IT careers among students who were previously interested in financial services jobs. Installing Linux apps: A few good tips Getting new software installed on Linux doesn't have to be hard, but it can differ depending on what you're installing. Windows Vista A to Z Reviews, analyses, how-tos, visual tours, hot issues and predictions about Microsoft's new OS. More Continuing Coverage After 9/11: Homeland Security Apple's iPhone Ask a Premier 100 IT Leader Bill Gates steps down BlackBerry Legal Battle Data Security Breaches Electronic Voting Firefox H-1B Visas HP's Boardroom Scandal Handheld Devices Hurricane Katrina Aftermath Microsoft Legal Issues Microsoft's Vista Open Source RFID Technology SCO's Linux Fight Sarbanes-Oxley Act Spam Voice Over IP Wi-Fi Windows Meta File Vulnerability Windows XP Service Pack 3 IT Careers 2010 Four years from now, the IT field will be a vastly different place. Will you be ready? More Special Reports Premier 100 IT Leaders 2007 Best in Class 2006 Computerworld Horizon Awards 2006 Premier 100 IT Leaders 2006 Salary Survey 2007 Best Places to Work in IT 2007 IT Forecast 2007 Premier 100 IT Leaders 40 Years of Computerworld ASPs, Take Two Best Places to Work in IT 2003 Best Places to Work in IT 2004 Best Places to Work in IT 2005 Best Places to Work in IT 2006 Business Intelligence Home Runs Business Intelligence: Smarter BI Business Intelligence: The Future of BI CRM Goes Vertical CRM: Sober CRM Career Planning Guide 2005 Careers: IT Profession 2010 Computerworld Horizon Awards 2005 Data Management: Mining for Gems Data Management: Taming Data Chaos Development: Hard-Workin' Web Sites Development: New Tools New Choices Development: The New World of Application Development Development: The Web Services Tsunami Development: Web Services Hurdles Disaster Recovery: Preparing for the Worst E-commerce Grows Up E-mail/Groupware: Big Decisions Faces of Mobile IT Forecast 2006 Global Mobile Hardware: Multiple Cores, Multiple Challenges Hardware: On-Demand Un-Hyped Hardware: The Shape of Things to Come Horizon Awards: 10 Cool Cutting Edge Technologies IT Management: Guide to Managing Vendors IT Management: Navigating Global IT IT Management: Recovery Ahead IT Management: The Future of IT IT Management: The Resourceful Project Manager Innovative Technology Awards 2004 Management: Reinventing IT Microsoft in Transition Mobile/Wireless Leaders and Laggards Mobile/Wireless: The Untethered Worker Mobile/Wireless: Tiny Gadgets, Huge Costs Network Management: Taking Control Networking: Turbulence Ahead! Networking: VoIP Goes Mainstream Operating Systems: In the Slow Lane Operating Systems: Linux Goes Global Operating Systems: Should You Nix Unix? Outsourcing: Offshore Buyer's Guide Outsourcing: Outsourcing Dangers Premier 100 IT Leaders 2004 Best in Class Premier 100 IT Leaders 2005 Best in Class ROI: Do the Math! Salary Survey 2003 Salary Survey 2004 Salary Survey 2005 Security Action Plan Security: Compliance Headaches Security: Proactive Security Security: Risk and Reward Security: Tips From Security Pros Souped-up Security Storage: Battling Complexity Storage: Cheap & Secure Data Stores Storage: Stretching Your Storage Dollars Storage: The Lean Storage Machine Storage: The New Rules of Storage Storage: The Ultimate Backup Guide Supply Chain: Missing Links Supply Chain: RFID Reality Check The Business of Security Web 2.0 Security Wireless: Wireless At Work All Zones Application Performance Zone Business Continuity Zone The File Data Management Zone Security Management Zone The SAS Zone Business Intelligence and Analytics Zone Windows Protection Zone The Enterprise Search Zone Software as a Service Zone The Security Zone See your link here

From Laggard to Leader: Transforming the Data Center From Laggard to Leader: Transforming the Data Center Register for this complimentary webcast today! Go to the webcast  Computerworld Executive Bulletin: Building a Robust Antivirus Defense Download this Executive Bulletin (a $49.95 value) for free, compliments of MessageLabs. (Source: MessageLabs) Antivirus software alone isn't enough to prevent today's speedy, sophisticated virus attacks. Security managers should consider multitiered approaches that include behavior scanning, appliances that check e-mail for worms, and restricting user access to dangerous Web sites. Download this Executive Bulletin (a $49.95 value) for free, compliments of MessageLabs, to learn more. Download this executive briefing  Quick Sizing Guide for SAS Grid Running on HP BladeSystems and EVA Storage Download this white paper today! (Source: HP) Designed for CIOs, IT managers, data center managers and grid computing architects seeking to improve performance, SAS Grid Computing on the HP BladeSystem c-Class helps accelerate growth and mitigate risks with a simplified, consolidated infrastructure that's agile enough to efficiently handle change. SAS Grid Manager on HP BladeSystem can lower costs through automation, virtualization and improved IT efficiency. Download this white paper  White Papers Read up on the latest ideas and technologies from companies that sell hardware, software and services. Business Transaction Management: Facilitating the Management of Virtual Environments Quick Sizing Guide for SAS Grid Running on HP BladeSystems and EVA Storage Prudential Financial protects its brand with Symantec Data Loss Prevention solutions View more whitepapers

• Sidebar: Card Data Breaches Exact a Heavy Toll on Credit Unions
• Securing Card Data Isn't an Easy Sell

• Feds considering changes to H-1B application process in wake of report
• The Grill: Privacy is a thing of the past, says private investigator
• Exploit code loose for six-month-old Windows bug
• More top stories 

The Security Zone Securing your network begins at the gateway, also called the perimeter, to keep unauthorized users, viruses and malicious code from entering your systems. Deploying multilayer technologies is your first line of defense. With the mobility of employees and the ease with which external devices can be brought in and out of a network, continuing to build your security plan for network servers and clients is a must. Fortunately, there is much that organizations can do to protect themselves from attacks - internal and external. One of the key facets of a successful security strategy is protecting the servers that run critical applications and house so much of your essential data. Having the right policies, procedures and server configurations is critical. Learn more in The Security Zone See All Zones

Fired up about IT? Join Sharkbait and share your true tales of IT. SharkBait is the place for you to sound off about everything IT – the good, the bad, and the rest of the weird stuff you deal with every day. New baits

"Turning information into a Competitive Advantage" Companies today are realizing that competitive advantage is harder to sustain when based solely on gains in productivity and cost efficiency. The focus is shifting to invest more in business optimization initiatives which rely on trusted information to develop new insights that deliver better business results. But how can this be done efficiently in a business environment across multiple applications and processes. The answer is an Information Agenda - an innovative approach to transforming business information into a strategic asset for competitive advantage. View this webcast now!  See more Webcasts

Preston Gralla: Apple plays the bully again Apple is once again unleashing its attack dog lawyers. This time against a college for using an apple in its logo. ... [more]