In today’s ever-increasing world of cybercrime, payment breaches have become more common given the sophistication of hackers. Major retailers such as Home Depot and Target have been victims of breaches along with insurance companies, and most recently, Equifax. What’s important for you to know is that if you ever become a victim of a debit/credit card breach, your account will be covered against any fraudulent activity and the money will be returned as quickly as possible. So, why do debit/credit card breaches continue to occur? We will walk you through the most popular method involving a hacker using illicit tactics in an effort to obtain lists of debit and credit card numbers.

The part of a Third-Party Payment Processor.Debit/Credit Card Breach
Let’s say you visit a major retailer to make a purchase using your debit/credit card. Some very large merchants may use their own in-house payment processing equipment to process payments made via a debit/credit card. However, others may use a third-party payment processor to manage this for them. The role of the payment processor is to facilitate sending the payment request to the issuer of the debit/credit card to verify there are enough funds in the account. If funds are available, the issuer of the debit/credit card will release the funds to the payment processor who will in turn transfer it to the merchant.

The role of the devious hacker.
A hacker will use sophisticated techniques in an effort to compromise a payment processor’s database to obtain stored debit and credit card numbers. Some hackers do this by installing malware on the payment processor system, which will automatically send customer card information back to the hacker. By using this approach, hackers are able to obtain essential debit and credit card information for all cards used while the malware is active. The unfortunate truth is that there is nothing you (the cardholder), or your bank could have done differently to prevent this from happening. The breach of confidential information occurred at a company having nothing to do with your bank. Once the hacker has the debit and credit card information they have stolen, they often sell the information to those who ultimately create duplicate cards and begin using them to purchase items and make cash withdrawals. Customers are protected from financial loss by following appropriate procedures. Unfortunately, despite not having anything to do with the breach of confidential information, your bank ends up incurring the financial loss.

We hope this provides a better understanding of how a debit/credit card breach occurs in this ever-evolving world of cybercrime. It’s important to know that Franklin Savings Bank takes a debit/credit card breach very seriously. We offer debit card monitoring services for all of our ATM Visa® debit cardholders, 24 hours a day, 7 days a week. If we suspect fraud against your account, we will contact you to confirm the validity of a transaction. If fraud has occurred, a new Visa® debit card will be issued and any fraudulent charges will be take care of. The most important thing you can do is closely monitor your account to ensure every transaction is legitimate.

Written by Dawn Beers

Dawn Beers

Dawn heads up our marketing department where she is responsible for the general oversight and management of the Bank’s marketing and public relations initiatives. This involves managing the planning, organizing and directing of our advertising, public relations, product development, sales promotion and research efforts.

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