TJX to Settle With MasterCard Holders
FRAMINGHAM, Mass.–TJX Cos., which paid $40.9 million in December to settle claims with credit union and bank Visa issuers over last year’s massive data breach, has agreed to provide $24 million to MasterCard issuers to settle their claims.
The MasterCard agreement is contingent on the agreement of 90% of the affected issuers. The settlement hinges on the credit unions and banks agreeing not to sue TJX separately.
While most affected CU Visa issuers agreed to the December offer, some of the larger issuers balked because the payout only covered a small part of the costs related to reissuance of cards.
TJX, the parent of national retail stores TJ Maxx, said as many as 45 million customer accounts were stolen by hackers from its database, exposing thousands of shoppers to fraudulent transactions.
The offer comes as hundreds of CUs and banks are working to resolve a new breach at Maine-based Hannaford Bros. supermarket chain.
Fair Isaac in Round Of Cutbacks, Divestitures
MINNEAPOLIS–Fair Isaac & Co., maker of the ubiquitous FICO score, said it has agreed to sell its insurance bill review operations and cut as many as 200 jobs in order to reduce costs.
The company said it has agreed to sell its insurance bill review unit to Mitchell International Inc., and is shopping its government research, advertising and veterinary diagnostics businesses.
The divestitures are expected to trim as many as 220 more jobs and save the company about $65 million a year.
The company’s share price has plummeted almost 50% over the past year amid turbulence in its main financial services market.
Security FCU Adds Teller Capture
SOUTHFIELD, Mich.–Security FCU said it has agreed to install Integrated Media Management’s teller item capture.
IMM’s teller item capture provides real-time check capture at the teller line. It is seamlessly interfaced on the front end with the core teller platform and on the back end where checks are embedded into an indexed PDF that includes a receipt and member identification. Teller item capture creates an electronic cash letter for electronic distribution to the Federal Reserve Bank, corporate credit union or other endpoints.
Also contracting for the teller capture system are: DuPage CU, First Community FCU, US FCU and Police & Fire CU.
CU’s Conversion Creates Glitch
CHARLOTTE, N.C.–Charlotte Metro CU said the conversion to a multi-factor authentication system to enhance its online security ironically created a glitch exposing some member accounts to other members.
At least one member reported gaining access to another member’s account information when he tried to log on, according to Nathan Tothrow, a spokesman for the credit union. Charlotte Metro notified 80 members by letter of the potential security breach.
“It’s like a fireboat catching fire and sinking,” Tothrow told the Credit Union Journal, of the glitch that occurred while they were trying to beef up online security.
The situation has been resolved, no accounts actually were breached and no fraud occurred, he emphasized.
Oregonians EVP Promoted To CEO
PORTLAND, Ore.–Oregonians CU said it promoted Chuck Garner, its executive vice president since 2005, to be its new CEO.
Garner will succeed Michael Cline, who last week retired as CEO of the $220 million credit union.
Cline led Oregonians CU since it was crated in a three-way merger in 2005 between Oregon Central CU, Oregonian FCU and Mt. View FCU. He had been CEO of Oregon Central CU since 2001.
Garner had headed Oregonian FCU since 1981 until the 2005 three-way merger.
Employee Charged With Stealing
SALT LAKE CITY–A former employee of Utah First CU was charged with siphoning more than $60,000 from members’ accounts by taking cash from the till, then forging 70 different members’ signatures on withdrawal slips.
The employee was charged with one count of felony theft and three counts of felony forgery.
The credit union has reimbursed its account holders.
