Massive Credit Card Breach Results InCivil Sanctions
WASHINGTON - (02/24/06) A data breach that exposed asmany as 40 million credit card accounts to hackers last year willresult in tighter security measures to protect millions of creditand debit card users, the Federal Trade Commission announcedThursday. CardSystem Solution has settled charges that the companybroke the law by failing to ensure adequate safeguards forsensitive customer information. The breach resulted in millions ofdollars in fraudulent purchases in credit union and bank accounts,with as many as 264,00 cardholders affected. CarsYstems has sincebeen acquired by biometric payments solution provider Pay By Touch,which has agreed implement a comprehensive security program andobtain independent audits every other year for 20 years. The FTCcould not seek civil money penalties under the law it accusedCardSystems of violating.