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National News

Credit card info breach costs millions

Losses caused by illicit use of major-brand credit cards issued in Japan following the theft of card information in the United States by hackers have exceeded ¥110 million, officials said June 22.

Data on 21,000 MasterCard-linked cards issued by 26 Japanese firms and on 46,000 Visa-linked cards issued by 12 companies may have been leaked from U.S. data-processing company CardSystems Solutions Inc.

Thirty-one JCB cards and 15 cards issued in Japan in a tie-up with Diners Club International Ltd. are among those whose data may have been stolen.

Data on Visa-linked cards alone were used illicitly to purchase products and services totaling ¥91 million.

Some of the stolen data was used to produce counterfeit cards, leading to the purchase of items such as DVD players and coupon tickets for Shinkansen bullet trains that can be easily converted into cash.

The losses are expected to be compensated for through insurance policies taken out by credit card firms, which may claim damages from Atlanta-based CardSystems.

Card replacement costs are expected to reach ¥100 million in the nation's card industry, industry officials said. (Kyodo)


Shukan ST: July 1, 2005

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