Risk: Informational
Citibank recently blocked several hundred debit cards after data was stolen from the US and fraudulent PIN-based transactions were made in the UK, Canada and Russia.
The data is rumoured to have originated from the office supplies retailer OfficeMax, but its spokesman strongly denies that any security breach has occurred, stating: "We have strong data security systems and procedures in place and constantly evaluate them. Consumers should feel confident in their ability to safely use debit cards at OfficeMax."
Three major data leaks have occurred in the US in the past six months, two of which have not been publicly disclosed by those companies involved. A legal loophole means that if stolen data includes details such as PIN or debit card numbers, but not consumers' names, the company protecting the data does not have to disclose the breach.
In December 2004, NTA Monitor published research conducted with consumers, which revealed that 20% more women than men are concerned with how easily they can remember their PIN numbers, rather than how secure they are.
The NTA Monitor 2004 PIN Number Survey also showed that women are twice as likely to choose one PIN number to cover all their debit and credit cards, as they are to choose different numbers. This could mean that stolen debit card data could be used on multiple cards to fraudulently withdraw funds.