Fergie's Tech Blog

Citibank ATM Fraud 'Just Tip of Iceberg' ?

An ongoing ATM fraud problem that forced Citibank into reissuing an unspecified number of US credit and debit cards is only part of a larger ongoing threat, a leading analyst warns. Avivah Litan, a research director at Gartner, said that Citibank is only one of a number of victims and that the banking industry is "less than halfway through this latest scam, which will continue to affect large numbers of cardholders".

Citibank said it blocked PIN-based transactions of Citi-branded MasterCard cards in the UK, Russia and Canada to protect US customer accounts. It blamed the problem on a security breach involving an unspecified US retailer. Litan, by contrast, suggests the theft of PIN data is the more likely cause of the security flap. She adds that other US banks have been forced to reissue ATM cards after customers' details were compromised.

posted by Fergie @ 3/13/2006 03:56:00 PM