CardSystems Solutions explained

CardSystems Solutions was a credit card processing company.[1] In June 2005, the fact that 40 million credit cards had been stolen from CardSystems was discovered.[2] [3] This led to the discoveries that CardSystems had been keeping data in unencrypted form that it was contractually obligated to delete, and that its own network was vulnerable to infiltration by hackers.[4] [5] [6] Visa and American Express subsequently dropped it as a credit card processing company.[7] [8] The data breach prompted controversy over regulation and triggered a federal investigation into the incident.[9] CardSystems was acquired by Pay By Touch. The buyout was completed on December 9, 2005.[10] All charges brought by the Federal Trade Commission against the company were settled in February 2006.[11] On March 19, 2008, Pay By Touch shut down.

At the time it was the largest computer hack in history.[12] [13] The hack would be surpassed by two different Albert Gonzalez hacks discovered in 2007the 45.6 million cards hacked from TJX Companies, revealed in March, and the 130 million cards hacked from Heartland Payment Systems, revealed in July.

Notes and References

  1. Web site: CardSystems Solutions, Inc.: Private Company Information - Bloomberg. www.bloomberg.com. 20 January 2018. live. https://web.archive.org/web/20180120212810/https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=1001852. 20 January 2018.
  2. Web site: writer. By Jeanne Sahadi, CNN/Money senior. Breach affects 40M+ credit cards - Jul. 27, 2005. money.cnn.com. 20 January 2018. live. https://web.archive.org/web/20171204064010/https://money.cnn.com/2005/06/17/news/master_card/. 4 December 2017.
  3. Web site: Zeller. Tom Jr.. MasterCard Says Security Breach Affects 40 Million Cards. The New York Times. 20 January 2018. 17 June 2005. live. https://web.archive.org/web/20180120212810/http://www.nytimes.com/2005/06/17/business/mastercard-says-security-breach-affects-40-million-cards.html. 20 January 2018.
  4. Web site: CardSystems Exposes 40 Million Identities - Schneier on Security. www.schneier.com. 20 January 2018. live. https://web.archive.org/web/20160806083412/https://www.schneier.com/blog/archives/2005/06/cardsystems_exp.html. 6 August 2016.
  5. Web site: Dash. Eric. Lost Credit Data Improperly Kept, Company Admits. The New York Times. 20 January 2018. 20 June 2005. live. https://web.archive.org/web/20171107115746/http://www.nytimes.com/2005/06/20/technology/lost-credit-data-improperly-kept-company-admits.html. 7 November 2017.
  6. Web site: CardSystems' Data Left Unsecured. WIRED. 20 January 2018. live. https://web.archive.org/web/20170706162414/https://www.wired.com/2005/06/cardsystems-data-left-unsecured/. 6 July 2017.
  7. Web site: Dash. Eric. Visa to Bar Transactions by Processor. The New York Times. 20 January 2018. 19 July 2005. live. https://web.archive.org/web/20160521212326/http://www.nytimes.com/2005/07/19/business/visa-to-bar-transactions-by-processor.html. 21 May 2016.
  8. Web site: Dash. Eric. Chief of Card Processor Fires Back at Visa. The New York Times. 20 January 2018. 21 July 2005. live. https://web.archive.org/web/20151108222256/http://www.nytimes.com/2005/07/21/business/chief-of-card-processor-fires-back-at-visa.html. 8 November 2015.
  9. Web site: Dash. Eric. CardSystems Sets Plan to Comply With Security Standards. The New York Times. 20 January 2018. 8 July 2005. live. https://web.archive.org/web/20151029192041/http://www.nytimes.com/2005/07/08/business/cardsystems-sets-plan-to-comply-with-security-standards.html. 29 October 2015.
  10. Web site: Dash. Eric. Card Center Hit by Thieves Agrees to Sale. The New York Times. 20 January 2018. 17 October 2005. live. https://web.archive.org/web/20151023194006/http://www.nytimes.com/2005/10/17/technology/card-center-hit-by-thieves-agrees-to-sale.html. 23 October 2015.
  11. Web site: CardSystems Solutions Settles FTC Charges. Federal Trade Commission. 20 January 2018. en. 23 February 2006. live. https://web.archive.org/web/20170410113917/https://www.ftc.gov/news-events/press-releases/2006/02/cardsystems-solutions-settles-ftc-charges. 10 April 2017.
  12. Web site: Dash. Eric. Zeller. Tom Jr.. MasterCard Says 40 Million Files Put at Risk. The New York Times. 20 January 2018. 18 June 2005. live. https://web.archive.org/web/20170921040818/http://www.nytimes.com/2005/06/18/business/mastercard-says-40-million-files-put-at-risk.html. 21 September 2017.
  13. http://www.computerworld.com/s/article/9014782/TJX_data_breach_At_45.6M_card_numbers_it_s_the_biggest_ever TJX data breach: At 45.6M card numbers, it's the biggest ever - Computerworld - March 29, 2007

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