TMG Advises Card-Issuing Clients to Exercise Diligent Fraud Monitoring in Wake of Global Payments Breach

Kelly Moore (for TMG)
515-720-9670
kelly@kellymooreconsulting.com

(Des Moines, Iowa – April 2, 2012) – The Members Group (TMG) is warning credit union clients to be on high alert for credit card fraud stemming from a significant breach of Visa and Mastercard card data from payments processor Global Payments, Inc.

According to TMG’s Karen Postma, cards risk senior manager, TMG is assisting its card-issuing credit union clients with the implementation of defensive strategies to minimize the impact of card fraud resulting from the breach.

“The best prevention strategies will be different for every issuer,” said Postma, “and will depend greatly on where and how the fraudulent activity occurs.” For some credit unions, a reissue may be the best approach to minimizing losses. For others, Postma said, tighter rule-setting and diligent monitoring will be sufficient.

Postma explained that fraudsters typically test several different bank identification numbers (BINs) before settling on the one or two that are most profitable. The TMG fraud department is monitoring card activity closely to identify which BINs are likely to be most impacted.

Postma, who has advised credit union card-issuers through breaches like the 2008 Heartland Payments System compromise, said it’s too early to predict the fallout from this particular breach. “We plan to be in close communication with each of our card-issuing clients for the next several months as the investigation into the breach continues. Credit unions should absolutely be proactive, however, monitoring their portfolios very closely to understand whether and to what extent they are being affected. If they determine they are being hit with high levels of fraudulent activity, more aggressive measures are likely necessary.”

About TMG
The Members Group (TMG) is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.themembersgroup.com.

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