March 14, 2008 NH Federal Credit Union received a list of compromised credit and debit cards today that stem from a data breach that first occurred in late 2007. We are sending a generic postcard to notify those members affected.
To protect our affected members from losses, we are issuing brand new VISA® credit and debit card account numbers today. Beginning Tuesday, March 18, we will be blocking those cards that were on the compromised card notice. You will want to take immediate action if you have recurring or automatic transactions with the affected VISA® credit/debit card, by notifying the merchant that your card number is changing.
We are working with our card issuer to get a replacement card to those members affected as soon as possible. However, there may be a delay in this process due to the large volume of cards that have been compromised.
In a seperate mailing, you will receive a new PIN for your new VISA® debit/credit account. You may change this PIN at any of NHFCU's ATMs, located at our Concord and Durham offices and at 43 North Main Street in Concord, NH.
What we mean when we say, "Your card has been compromised".
Most of our members realize how convenient it is to use a credit or debit card for your purchases. Whether you're at a retail store, making an online purchase, or paying for gas at the pump, using your VISA® credit or debit card is just FASTER.
The Transaction Route
When you pay with your VISA® credit or debit card, your account information is retained by the merchant (the store or vendor you used your card at) on a database and maintained so the merchant can receive the actual credit for the transaction. Millions of merchants process millions of transactions this way every day. VISA® USA is a payment processor, and they have established guidelines that merchants and card issuers must follow in order to safeguard the account information that is being processed.
The Compromised Card
Occasionally, a merchant or processor will experience a breach in the security of its account information database. The breach could be caused by an employee who did not follow proper procedures, or it could be caused by criminal activity. Either way, the merchant or processor must notify VISA® USA, who in turn notifies all of the institutions whose cardholders appear in the database. Often when this happens, there are thousands of financial institutions whose cardholders have been compromised. This does not mean that data related to your account was taken, or that fraud has occurred.
What Your Credit Union Does
We believe that we must protect our members at every opportunity. When we receive a notice of compromised accounts, we immediately take action by issuing brand new VISA® credit and debit card account numbers and blocking affected VISA® credit and debit cards from further use. We also notify all of the members whose cards are blocked so we can alert them that 1) their cards have been blocked for future transactions, and 2)they should let us know if they question a particular transaction. This is often done with a generic postcard mailing to members affected.
Information About the Merchant Involved
It's early in the investigation. At this point, the source of the data breach is unclear. It would be unfair to damage one company's business or reputation without knowing all the facts of the situation.
Should People Stop Using Their Debit and Credit Cards?
No. Millions of transactions occur with millions of merchants worldwide each and every day. While compromised card situations are happening more frequently, you are protected. VISA® USA mandates that consumers cannot be held liable for fraudulent transactions on their debit and credit cards. Your Credit Union takes preemptive action to help you avoid the headaches associated with fraudulent use of your account, like bounced checks, finance charges, and so forth.
How to Avoid Being Stuck with a Blocked Card
Credit and debit cards do make life much easier. But we recommend that you always have at least two methods of payment with you when you know you are going to be making purchases.
What We Also Recommend
Keep us informed of all of your current contact information such as your home and work phones and e-mail addresses. This way we can easily reach you if needed.
Call us if you're taking a trip. We also use a fraud protection service that monitors our members accounts for suspicious activity. This can cause transaction denials if a transaction is questionable and we are unable to reach you. You can call us at (603)224-7731 or (800)639-4039. You can also e-mail us at admn@nhfcu.org or through e-branch.
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