Target Breach Fallout: Backlog Slows Replacement Cards for Consumers

Target Breach Fallout: Backlog Slows Replacement Cards for ConsumersHere is one more problem created by the massive Target security breach affecting at least 70 million consumers: a backlog of orders at the companies that make the replacement cards.
This means many Target costumers still have not received their new credit or debit card if they shopped at the retailer’s stores during the holiday shopping period affected by the hack on point-of-sale swiping devices.
KrebsonSecurity continues to break stories related to the Target theft. This week, Krebs reports that the fraudsters who are taking advantage of the Target breach have no problem counterfeiting stolen cards quickly. However, the companies who make the replacement cards for the banks are not quite as fast.
Krebs said he spoke with the head of security at a small federal credit union. It seems that the credit union ended up printing their own cards in-house.
Krebs reports that the security chief was “told by their financial services provider that their order for some 2,000 new customer cards compromised in the Target breach would have to get behind a backlog of more than 2 million existing orders from other banks.”
Fiserv, a Wisconsin financial services firm, manages the online banking portals for many small to mid-sized U.S. financial institutions. In addition to servicing this credit union, Fiserv also prints cards for some of the biggest banks in the world, including Bank of America and Chase.
Murray Walton, chief risk officer at Fiserv, told Krebs that the company has seen “extraordinarily high demand for new cards” following the Target breach.
However, he said Fiserv is moving quickly to reduce the backlog of orders.
Walton tells Krebs:  “We believe we are managing this situation as well as possible, and are beginning to see our cycle times (order to delivery) diminish compared to a few weeks ago.  Meanwhile, we note that fraud prevention is a multi-faceted challenge, and card reissue is only one arrow in the quiver.  Alert consumers and behind-the-scenes fraud management programs are also essential.”

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