MasterCard, Visa confirm credit card data theft described as ‘massive’‏

Just when we thought the big credit card data breaches were over, atleast for a while (with Alberto Gonzalez put away after his scams at TJX, Heartland Payments and others) – along comes a new one reported today in www.Krebsonsecurity.com.

See KrebsOnSecurity.com Visa and MasterCard have already issued warnings on this. I’ve spoken with folks in the card business who are seeing signs of this breach mushroom. Looks like the hackers have started using the stolen card data more recently. From what I hear, the breach involves a taxi and parking garage company in the New York City area so if you’ve paid a NYC cab in the last few months with your credit or debit card – be sure to check your card statements for possible fraud. One interesting twist again sheds light on the fact that knowledge based authentication should not be relied upon.
I heard (and this may not be factual) that the crime was perpetrated by a Central American gang that broke into the company’s system by answering the application’s knowledge based authentication questions correctly. Looks like the hackers took over an administrative account that was not protected sufficiently.
Source:http://krebsonsecurity.com/2012/03/mastercard-visa-warn-of-processor-breach/