Re: Re: Is the Bottom Line Impacted by Security Breaches?

[IRCGNet <ircgnet () gmail com>]

Michael Holstein wrote:
> > I'm not so sure it's that simple... People were aware of it.
>
> Um .. but *which* 40mil was it? Am I one of them? Hearing that 40mil 
> random people got nicked is one thing .. me getting a letter from MBNA 
> another.
>
> Mastercard/Visa certianly know .. and so do some member banks, because 
> some of them (in Australia, IIRC) replaced their cards proactively.
>
> Their "logic" behind this is that their "zero liability due to fraud" 
> clauses make it illogical to even care about compromised account 
> numbers .. but anyone that's tried to contest a charge (because most 
> don't let you do it online like AMEX does) .. can attest to what a 
> major PITA that is (certified mail, etc.).
>
> > One would hear about such loss from publicly traded companies, 
> > similar to
> > the 4% loss in Q2/2005 due to the Wendy's chili case.
>
> And hopefully .. once they go public .. they'll be held a bit more 
> accountable.
>
> ~Mike.
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This is old news and was reported over a month ago by many sites 
including http://www.creditrepaircombat.com/

As for the current card holders, it's my understanding that all cards 
that were disclosed were replaced so no customers out there who owned 
these cards have anything to worry about.

Is this still a big issue? You're damned right it is. These credit card 
companies still need to be held accountable for their lack of security 
which allowed this hack to begin with. If they spent a tenth that they 
do on advertising as they did on security, this kind of thing would 
never (or very unlikely) happen.

Cya,

Michael
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