PIN Scandal 'Worst Hack Ever'; Citibank Only The Start

The unfolding debit card scam that rocked Citibank this week is far from over, an analyst said Thursday as she called this first time ever mass theft of PINs "the worst consumer scam to date."

Wednesday, Citibank confirmed that an ongoing fraud had forced it to reissue debit cards and block PIN-based transactions for users in Canada, Russia, and the U.K.

But Citibank is only the tip of the iceberg, said Avivah Litan, a Gartner research vice president. The scam -- and scandal -- has hit national banks like Bank of America, Wells Fargo, and Washington Mutual, as well as smaller banks, including ones in Oregon, Ohio, and Pennsylvania, all of which have re-issued debit cards in recent weeks.

"This is the worst hack ever," Litan maintained. "It's significant because not only is it a really wide-spread breach, but it affects debit cards, which everyone thought were immune to these kinds of things." InformationWeek | E-Fraud | PIN Scandal 'Worst Hack Ever'; Citibank Only The Start | March 9, 2006

Linked by shanmuga Thursday, 9th March 2006 10:31PM