Twenty States Hit by Debit Card Fraud in... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Twenty States Hit by Debit Card Fraud in Michael’s Stores

Twenty States Hit by Debit Card Fraud in Michael’s Stores

Twenty States Hit by Debit Card Fraud in Michael’s Stores
The content is accurate at the time of publication and is subject to change.

Shopping for craft supplies at the local Michael’s in Illinois was recently a slap in the face for some debit card and credit card users. As April turned into May, Michael’s released an announcement that its card processing machines were tampered with throughout its Illinois locations. The tampering exposed personal debit and credit card information to thieves. Further investigation into the matter reveals that the problem is worse than initially thought.

The Damage Spreads

Originally, Michael’s thought the incident was isolated to its Illinois locations, primarily the Chicago area stores. Now, Michael’s has discovered that the fraud has touched 20 states throughout the country. The states involvedinclude Washington, Illinois, Virginia, Colorado, Utah, Ohio, Delaware, Rhode Island, Georgia, Pennsylvania, Oregon, Iowa, Massachusetts, New York, Maryland, North Carolina, New Hampshire, Nevada, New Jersey and New Mexico.

During the investigation, 90 keypads out of its 964 store locations showed signs of tampering. Michael’s plans to remove and replace approximately 7,200 keypads to ensure that there are not any additional problems with fraud. The problem was first brought to the attention of the corporate office when some of the banks issuing the cards contacted the craft supplier giant to report customer complaints of fraudulent activity in their bank accounts.

How it May Have Happened

If the problem occurred in one or two locations, the task of pinpointing the source of the fraud would be easier. With such a widespread dilemma, Michael’s is not sure how this happened. One theory from a source outside the retailer is that someone posing as a worker for a terminal repair company came into the stores and either tampered with the existing PIN pads or replaced the terminals with units that would divulge the credit and debit card information to the scammers.

The primary issue with the breach of debit card information is how little stands between cardholders and thieves. Once crooks have the debit card numbers and PINs, they can compromise bank accounts, giving them direct access to consumers’ hard-earned cash.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

American Express Making it Easier to Resolve Transaction Disputes

Posted: October 19, 2018

Have you ever noticed a strange charge on your credit card statement, and then called up to find out what it was, only to get frustrated by the lack of information available? If so you may well be happy to learn that American Express has ... Continue reading
New Travel Benefits for Mastercard World and World Elite Cardholders

Posted: October 18, 2018

Mastercard has upped the ante when it comes to travel for Mastercard World and World Elite cardholders by adding two new benefits into the mix. Now cardholders get access to Mastercard’s Hotel Stay Guarantee and Lowest Hotel Rate ... Continue reading
Paying Bills is Getting Easier with Mastercard Bill Pay Exchange

Posted: October 17, 2018

MasterCard is looking to help consumers pay their bills more easily and quickly with Bill Pay Exchange, a new digital solution they are launching. The Bill Pay Exchange will let people manage and pay all sorts of monthly bills ranging from ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!