Consumer's Risk From America's Largest Data Breach Still Remains Elevated
By Myles Cairns
When a major data breach occurs and consumer’s private information is exposed – the public is always told something like "not to worry because the breach is contained and under control". Next time you hear that story – don’t believe it.
New information about the theft of customer information from TJX (TJ Maxx, Marshalls & Winners) revealed that as many as 94 million Visa and Mastercard holders were exposed to hackers. That number is almost DOUBLE the initial estimate of 46 million customers which TJX first reported.
Despite TJX claims that losses were minimal, Visa officials estimated losses as high as $83 million as a result of the breach. It now looks like this is the biggest and costliest data breach in history.
Hackers scanned info from their cars in parking lots
No arrests have been made in the TJX breach which highlights why identity theft is the nation's fastest growing crime. Odds of criminals getting caught are very low.
As simple as it sounds, investigators confirmed that hackers used wireless equipment to invade TJX's unprotected database of payment information while driving by or parking near stores owned by the TJX company, including TJ Maxx and Marshall's.
Once the thieves had the information, the customer data found its way into the "underground economy" that specializes in trading, selling and sharing stolen personal data.
Some of this personal credit card information from the TJX incident was used in an $8 million scam in Florida earlier this year. A fraud ring used the stolen TJX data to create fake credit cards, which they used to purchase gift cards from Wal-Mart. The thieves then used the gift cards to make big ticket purchases such as plasma TVs and computers.
The risk to consumers still exists
Joseph Majka, Visa USA's vice-president of fraud management and investigations, said the fraud purchases in the names of North American consumers stolen in the TJX breach would continue to increase as the stolen information found its way into more thieves' hands.
"These are going to be sold off for a period of time in the future, so it's going to continue for some time out there," said Majka.
Your risk as a consumer and potential victim in this massive data breach is still not over. Consumers are advised to be aware of all purchases made on your Visa and Mastercard throughout the holiday season and beyond.
It is mindboggling how such information is suppressed. One has to wonder how many more incidents and real numbers are suppressed.
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The threat of Identity Theft continues to get more scary every day. The time for all of us to take action to protect ourselves is now.
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