Best practice checklist for card data breaches

Many of the large-scale card data breaches in 2015 involved the compromise of magnetic stripe data on both credit and debit cards. The data compromised in most of these card breaches involved either track 1 or track 2 magnetic stripe fraud (POS 90), as determined by the merchant during the transaction authorization. Because the track information can be duplicated, there will likely be a high risk for future fraud exposure if you opt not to block and reissue these cards.

For an in-depth look into payment card fraud risks that many credit unions are being hit hard with right now, watch Allied’s webinar “Card Fraud on the Rise: How Financial Institutions Can Help Prevent It.”

Card Data Breach Risk Prevention Steps:

• Evaluate the compromised card number to help determine if the risk is high
  • A high risk involves the full unaltered magnetic stripe data from track 1 and/or track 2 – track 1 carries the cardholder name; track 2 does not
• Confirm you’re utilizing “name matching” if track 1 data was part of the breach

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