TELECOM Digest OnLine - Sorted: Lost Credit Data Improperly Kept, Company Admits

Lost Credit Data Improperly Kept, Company Admits

Monty Solomon (monty@roscom.com)
Mon, 20 Jun 2005 01:45:54 -0400

By ERIC DASH

The chief of the credit card processing company whose computer system
was penetrated by data thieves, exposing 40 million cardholders to a
risk of fraud, acknowledged yesterday that the company should not have
been retaining those records.

The official, John M. Perry, chief executive of CardSystems Solutions,
indicated that the records known to have been stolen covered roughly
200,000 of the 40 million compromised credit card accounts, from Visa,
MasterCard and other card issuers. He said the data was in a file
being stored for "research purposes" to determine why certain
transactions had registered as unauthorized or uncompleted.

"We should not have been doing that," Mr. Perry said. "That, however,
has been remediated." As for the sensitive data, he added, "We no
longer store it on files."

Under rules established by Visa and MasterCard, processors are not
allowed to retain cardholder information including names, account
numbers, expiration dates and security codes after a transaction is
handled.

http://www.nytimes.com/2005/06/20/technology/20credit.html?ex=1276920000&en=04e9ba4fe5ae0543&ei=5088

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