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JPMorgan & Chase Co are limiting how much money their customers can spend on a daily basis because of the data breach at Target over the 2013 Back Friday shopping event.
Cash and debit card spending limits are being implemented on 2 million debit card holders because those customers are suspected of having shopped at Target during the time period in question.
JPM is considering issuing new debit cards to those customers who were directly affected by the data breach.
Chase customers will be limited to $100 daily withdrawal from ATMs.
Debit card users will see $200 – $500 daily limits as well as $500 daily purchase limit.
Customers are encouraged to come into their local branch to withdraw more cash if necessary; however that too is limited to $300 per day.
The new rules will take a few weeks for full implementation. With issuing new cards, JPM recommends that “about half of its 5,600 branches in 23 states can issue new cards on the spot for customers who want the limits lifted faster.”
Due to this new change, JPM “decided to open about a third of its branches on Sunday, when they were normally closed, to help affected customers.”
Because an estimated $40 million was allegedly stolen due to the data breach, JPM does not want to take chances with customers – thereby installing controls on customer funds.
Target Corporation has offered in-store shoppers a 10% discount over this past weekend for having their person information stolen.
Ken Perkins, founder of Retail Metrics commented : “Given how deep discounts have been across the retail landscape this holiday season, I don’t know if that moves the needle that much. Twenty percent might have drawn serious interest, but 10 percent? I don’t know.”
Other banks such as Bank of America (BoA) and Citigroup are taking precautions to monitor and control cash flow from customer accounts using the Target incident as justification.
Earlier this week, Target Corporation had a security breach during this year’s Black Friday in which “millions of customer credit and debit card records” were stolen.
Brian Krebs, computer security expert, stated: “I’ve heard from five different people at five different banks, and the banks are being tipped by the card companies. At least two major card issuers [banks] said hundreds of thousands of cards had been compromised, and there are dozens of card issuers, so that adds up to millions of cards.”
This problem “extends to nearly all Target locations nationwide, and involves the theft of data stored on the magnetic stripe of cards used at the stores.”
Krebs explains: “The type of data stolen — also known as track data — allows crooks to create counterfeit cards by encoding the information onto any card with a magnetic stripe. If the thieves also were able to intercept PIN data for debit transactions, they would theoretically be able to reproduce stolen debit cards and use them to withdraw cash from ATMs.”
Analysts have concluded that the breach occurred on Black Friday and continued into the middle of December affecting “an unknown number of Target customers who shopped at the company’s main street stores during that timeframe.”
Target collects data on customers, including:
• Date of birth
• Social security number
• Driver’s license number
• Credit card information
• Email address
By installing malware into the system, “or persuaded an unsuspecting employee to click on a malicious link that downloaded malware that gives cybercriminals a foothold into a company’s point-of-sale systems.”
Technology has afforded retailers the ability to track customers through mobile phones, work computers and even while in line at the register.
Holiday shopping is proving to be a massive data mining endeavor with signups for loyalty cards that collect data on customer behavior.
The private information available to retailers from customer loyalty cards can include:
• Zip codes
• Home/employment addresses
• Personal income
• Insurance expiration
Retailers claim that this information derived from monitoring the public can “determine exactly what kind of buyer [the customer] might be and how much [the customer is] willing to pay” for products.
Mailing lists can ensure that retailers can install cookies into customer’s computers to watch their movements online with provisions for ‘relevant pop-up ads” marketed to specified potential customers.
There is a reason why US consumer revolving (credit card) credit growth is getting lower and lower and lower and at last check posted a mere 0.2% annual increase.
That reason is that as the NY Fed disclosed moments ago, federal student loans officially crossed the $1 trillion level for the first time ever. Notably: the quarterly student loan balance has increased every quarter without fail for the past 10 years!
And just to prove that while credit card balances are plunging due to more stringent bank repayment requirements, this is more than offset by borrowers shifting to student loans, where the delinquency rate on student loans is soaring and has just hit an all time high of 11.83%, an increase of almost 1% compared to last quarter. Even according to just the government lax definition of delinquency, a whopping $120 billion in student loans will be discharged. Thank you Uncle Sam for your epically lax lending standards in a world in
which it is increasingly becoming probably that up to all of the loans will end up in deliquency.
This Saturday, Canadians and Americans will gather outside the Canadian Consulate in Minneapolis to build a united wall of opposition to pipelines, reckless tar sands expansion and runaway climate change.
The event is the first of over 90 confirmed Defend Our Climate, Defend Our Communitiesrallies to take place outside of Canada. According to Carolyn Pennisi, the host of Saturday’s event, these aren’t just Canadian issues. “These are not even just North American issues,” she says, “They’re global issues.”
Pennisi is a self-identified “Canadian American” who grew up in Canada and moved to the U.S. as a teenager. Though she’s lived south of the forty-ninth parallel for most of her life, she says she still feels very Canadian in her heart.
Both the Alberta and federal governments have been pushing hard to sell Alberta’s oilsandsin the country her family now call home. In fact, Alberta Premier Alison Redford is in Washington, D.C., this week pushing Alberta’s “responsible energy development and… strong environmental policies” according to a media release from Redford.
Redford and representatives from the Harper government have been lobbying President Barack Obama to approve the Keystone XL pipeline project. Obama has said he will not approve the project if it increases greenhouse-gas emissions, so Canadian representatives have been arguing KXL won’t increase GHG emissions by driving up bitumen production.Documents obtained from Alberta under Access to Information legislation and released last week by The Globe and Mail dispute this argument.
According to Pennisi, “Our countries are historically friends. But on this issue, Canada’s getting some bad press.”
“I recently apologized for being Canadian, for the first time ever,” admits Pennisi.
“What we keep hearing is Canada is putting in the pipelines and Canada wants to send all this oil down here and Canada this and Canada that… we don’t all want to push our oil on the U.S. Some of us object. But it’s not Canada. It’s just some people in Canada.”
A recent poll from Canada 2020 and the University of Montreal found that a majority of Canadians understand that humans are contributing to global warming and they overwhelmingly believe that the federal government should take the lead on combatting climate change.
In addition to the Keystone XL which would increase total capacity of the pipeline to 1.1 million barrels of diluted bitumen per day, Enbridge filed plans to Monday to build the $2.6B Sandpiper pipeline project across northern Minnesota. If approved, the project will move 225,000 barrels per day of unconventional oil to Minnesota, and 375,000 barrels to Wisconsin. Pennisi notes there are local groups fighting both projects.
Pennisi is concerned that our government’s massive lobbying efforts to push the oilsands are having a detrimental impact. “I’m concerned that our reputation has started to tarnish. For Canada to start being seen as this big greedy polluter is not good for either country.”
Pennisi has participated in activism before: She once took an overnight bus trip to Nebraska to testify for the Keystone XL hearings. But she’s never hosted an event like this before.
At first Pennisi was anxious about drawing folks out to Saturday’s action, but she’s feeling really encouraged at the response from her community.
“I actually have people rallying around me,” Pennisi said, adding that one man from her daughter’s school said he would try to make it despite it being the Sabbath, and others promised to help spread the word on Facebook.
“It’s happening, and it feels so good to have people in my corner rather than to feel like I’m fighting climate change alone.”
- Credit card data can be stolen with a wave and an app (cbc.ca)
- Smartphone Used To Scan Data From Chip-Enabled Credit Cards (mobile.slashdot.org)
- Smartphone app that allows credit card skimming ‘real risk’ to consumers: experts (globalnews.ca)