Company hides credit card losses

Posted by greg
July 22, 2008

By Greg George
CEO
Spinal Cord Resources Network

Direct Marketing Services has recently disclosed that it lost over 51,000 credit cards along with customer information that went with the cards. The data included name, address and the 3 digit code on the back of the credit card. This company may not ring a bell, but several of it’s web properties will. They include Wards.com (from Montgomery Ward fame), SearsH0omeCenter.com, SearsShowPlace.com, and SearsRoomForKids.com. Most customer probably don’t realize that Direct Marketing pays a fee to use these names back to the parent company, and as such probably think they are working with the parent. Customers are now getting a rude awakening  about a hack that happened December of 2007 on HomeVisions.com, yet another property of Direct Marketing. CitiGroup found the initial break in, and Direct Marketing then followed what Visa told them to do, which is largely technical on how to lock things down and to notify the Secret Service and the credit card companies. The company didn’t think that it had to inform the individuals associated with the break in even though most states have laws on the books to force the release of information.

Story continues in SCRN Law Center

Roaring Mouse (advocacy)

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