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Local debit card users warned of “breach of security”

Posted on: 2:42 pm, April 5, 2013, by

Customers at some area banks are being warned about possible fraudulent transactions on their debit cards, after a major breach in security at an un-named restaurant chain with locations in the Quad Cities.

Some local banks are cancelling customers debit cards and replacing them as “a precautionary measure”,  after thieves hacked into the system that stores the restaurant’s financial information.

“We have over one thousand and we’ve talked with a number of other financial institutions. I would guess two to three thousand people that probably have had their debit card compromised in this situation, in the Quad Cities”, said John DeDoncker, President and CEO at THE National Bank in Bettendorf.

Letters were sent to customers of the bank this week, but the restaurant chain involved was not named.

“I’m not allowed to tell you who the merchant was. It’s a Quad Cities business with multiple locations and their processor was obviously hacked. If they allow someone to hack in and get those numbers and information they need, the bad guys go to town”, DeDoncker said.

The bank says in cases like this, if there is any fraudulent activity that turns up on the debit cards, the customer is off the hook.

“We accept the liability if there is fraud on them. The customer does not lose their money in any way, shape , or form”, he said.

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