Remember CardSystems? They were in the news in June for having illegally (or at least against Visa/MC rules) stored customer credit card information, including I believe, the Card Verification Values (CVV2/CID) and hackers got into their system many months earlier. 200,000 card holder accounts were compromised! [see earlier post: MasterCard: 40 Million Cards at Risk]

Today’s New York Times [free registration required] reported in the article, CardSystems Sets Plan to Comply With Security Standards that CardSystems has hired outside firms to fix their shoddy computer security. The article also mentions that "an Australian bank said that it was able to detect fraud related to CardSystems as early as the end of last year." You might ask yourself then, why was nothing done about the fraud for so long? The factual answer is scary: the cost of this fraud to the credit card companies is negligible. The MERCHANTS bear most of the costs.

Will CardSystems be penalized? If so, how? I’m following this story closely.

This entry was posted on Friday, July 8th, 2005 at 10:51 am and is filed under In The News, CCAuthorize. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. | Permalink