Credit cards cancelled over fraud fears

BANKS have been forced to recall thousands of Irish credit cards amid fears they may have been used by fraudsters in the US.

An estimated 3,000 people have had their cards cancelled, revoked and re-issued since Visa and Mastercard issued a worldwide security alert to financial institutions, warning them of a possible security breach.

It is believed that more than 2,000 AIB and Bank of Ireland customers have been affected, along with 100 TSB customers and 73 holders of NIB credit cards. Ulster Bank had no evidence that its customers had been affected by the security breach, but is continuing to monitor the situation.

Last week, both Visa and Mastercard issued a worldwide alert following what has been described as an internal breach of security at a US business. It is believed cards at risk of potential fraudulent transactions were used in the US one year to 18 months ago. All vulnerable numbers have been supplied to banks and those customers have been contacted.

Because the investigation into the incident is ongoing, no further details of the exact nature of this security breach or of the company involved have been released.

Visa EU’s corporate communications spokesperson Roz Barder said the company acted as soon as it became aware of an internal security breach at a US-based business that “resulted in the potential compromise of Visa card account information”.

“Visa quickly issued a fraud alert to our member financial institutions and is closely monitoring the situation. Visa will work with our members and law enforcement officials to take whatever steps are necessary to protect Visa cardholders,” Ms Barder added.

Late last week the banks began the task of contacting each of the affected customers by telephone or post, to inform them of the potential security breach and the cancellation of their cards. Most customers have now been issued with new cards.

It is believed that no fraudulent transactions have been discovered on the Irish credit cards identified by the investigation.

Bank of Ireland’s head of card marketing, Eddie Ryan, said Visa and Mastercard issue regular security warnings if they believe card security has been compromised.

He urged anyone with a credit card to examine their statements and contact their bank if they notice any unfamiliar transactions.

Over the last three years, Irish banks have been stung for an average of €5 million annually as a result of credit card fraud. Next summer the Irish Payment Services Organisation hopes to stamp out credit card fraud with the introduction of a new microchip and personal identification number system. This will prevent criminals from making copies of the card, known as ‘skimming,’ or racking up thousands of euro worth of purchases by simply using your card number.