We have an update on our last past about Global Payments Inc. Let us quickly referesh your memory and then get on to the update.
Previous post: A massive data breach at Global Payments has exposed 1.5 million credit card accounts. Visa, MasterCard and American Express firms process their payments through Global Payments. Thieves managed to access credit card numbers, security codes and expiration data. This breach has led Visa to think twice about Global Payment being its vendor.
Present: Global Payments Inc’s situation has gone from bad to worse. The talk in the town is that Global Payments may have been breached a lot earlier than reported. Two of the aggrieved card members said that the window for compromise dates back to June 2011. The issuers names have been kept anonymous.
As per Visa’s alerts the breach occured between Jan 2012 and mid February. According to Global it communicated this to the affected people on March 30. The possibility that a much higher number of credit cards had been affected (approximately 10 million) by the breach cannot be ruled out. Hackers had managed to steal customer names, credit card numbers, expiration dates and the security number.
Looking at the current picture, the fact cannot be denied that they were aware of the scheme since June 2011, eight months ago. The new investigation leads confirm this. It further confirms that not 1.5 million but 7 million records were breached!
According to Global Payments CEO Paul Garcia the company found out about the breach internally on March 8 and immediately alerted the card associations. Garcia further added that their initial disclosure was “forced by wild speculation in the press regarding this matter and our company.”
Global Payments spokeswoman Amy Korn’s comment
Ms Korn declined to comment but said the company would be releasing additional information about the breach in a statement on its Web site soon.
Statement by Global
“We have not publicly communicated any time periods and there is a full investigation underway. It would be premature and inappropriate for us to speak to or confirm any timeframes until the investigation is complete,. “The company sincerely apologizes for any concern this has caused, and please know that we continue to work with industry third parties, regulators and law enforcement to assist in all efforts to minimize cardholder and customer impact,” it said.
Shareholder Lawsuit
There is a strong possibility that Global Payments may face a shareholder lawsuit. Law firm, Robbins Umeda, specializing in securities litigation, released a statement saying that it was “investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Global Payments.”
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