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Tag: Visa

  • Visa and Mastercard Suspend Russia Business

    Visa and Mastercard are the latest, and two of the most influential, companies to suspend operations in Russia in response to its invasion of Ukraine.

    Visa and Mastercard answered calls from President Volodymyr Zelenskiy to suspend their business in Russia, in an effort to make Russia’s invasion as costly to the country as possible. According to The Guardian, both companies are isolating Russia, preventing cards issued in the country from working outside, and vise versa.

    “We are compelled to act following Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed,” said Alfred Kelly, Visa’s CEO.

    “We regret the impact this will have on our valued colleagues, and on the clients, partners, merchants and cardholders we serve in Russia.”

    “This war and the ongoing threat to peace and stability demand we respond in line with our values.”

    Mastercard echoed those sentiments in their own statement:

    “For more than a week, the world has watched the shocking and devastating events resulting from the Russian invasion of Ukraine.

    “Our colleagues, our customers and our partners have been affected in ways that most of us could not imagine.

    “We don’t take this decision lightly. Mastercard has operated in Russia for more than 25 years.

    “We have nearly 200 colleagues there who make this company so critical to many stakeholders.

    “As we take these steps, we will continue to focus on their safety and wellbeing, including continuing to provide pay and benefits.”

    While the companies are clearly working to isolate Russia, domestic customers will still be able to use their cards in-country, according to The Guardian.

  • PayPal Launches ‘Checkout With Crypto’ in US

    PayPal Launches ‘Checkout With Crypto’ in US

    PayPal has taken the next step in its embrace of cryptocurrency, launching “Checkout with Crypto” to US customers.

    The company recently began allowing customers to own, trade and hold cryptocurrency, but now customers can use their currency to make purchases in the US. At the time of purchase, PayPal will convert the cryptocurrency to a fiat currency, with no additional transaction fees.

    “As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet,” said Dan Schulman, president and CEO, PayPal. “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”

    PayPal’s move comes just a day after Visa announced it was accepting USD Coin for settlement transactions.

  • Visa Accepting USD Coin Cryptocurrency

    Visa Accepting USD Coin Cryptocurrency

    In the latest evidence of cryptocurrency acceptance, Visa has announced it will accept USD Coin to settle transactions.

    USD Coin is a cryptocurrency that is backed by the US dollar, and operates on the Ethereum blockchain. Visa now becomes one of the first major financial firms to accept cryptocurrency as a form of payment.

    “Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors,” said Jack Forestell, executive vice president and chief product officer, Visa. “The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”

    Visa traditionally requires a fiat currency for settlement payments, but it hopes that supporting USD Coin will remove a layer of cost and complexity for digital currency-based businesses.

    Visa has partnered with Anchorage, “the first federally chartered digital asset bank and an exclusive Visa digital currency settlement partner,” and “has launched a pilot that allows Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program.”

  • Visa Ends Plaid Takeover Bid Amid DOJ Suit

    Visa Ends Plaid Takeover Bid Amid DOJ Suit

    Visa is abandoning its plans to acquire Plaid after the Department of Justice (DOJ) sued over antitrust concerns.

    Visa announced in January 2020 its plans to purchase Plaid. While the smaller company is primarily known for a service that allows users to connect their bank accounts to various finance apps, the company was working on a service that would directly compete with Visa’s core business.

    As a result, Visa’s move to purchase Plaid, to the tune of $5.3 billion, was widely seen as an attempt to stamp out a competitive threat from a smaller rival. The DOJ was concerned by that, especially given Visa’s dominance in its market, prompting it to file a lawsuit.

    According to CNBC, Visa has ended its takeover attempt, a decision the DOJ has hailed as “a victory for American consumers and small businesses.”

  • DOJ Suing to Block Visa’s Plaid Acquisition

    DOJ Suing to Block Visa’s Plaid Acquisition

    The Department of Justice (DOJ) is suing to block Visa’s acquisition of Plaid, citing concerns over Visa’s monopoly in the online payments market.

    Plaid is a service that allows users to securely connect their bank accounts with the finance apps they use. This allows them to send and receive money, as well as interact with their accounts.

    Given Visa’s stranglehold on the debit and online payments market, Plaid could be seen as competition and threat to Visa’s business. In fact, according to the DOJ, Visa’s CEO saw the acquisition of Plaid as an “insurance policy” and a way to protect against a “threat to our important US debit business.”

    That threat has come into clear focus as Plaid has been planning a service that would more directly compete with Visa. Although the new service has yet to be released, it is believed to be an online debit service, one that would directly challenge Visa’s dominance.

    Visa’s attempt to buy a potential competitor, to the tune of $5.3 billion, is not going over well with the DOJ.

    “American consumers and business owners increasingly buy and sell goods and services online, and Visa – a monopolist in online debit services – has extracted billions of dollars from those transactions,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Now, Visa is attempting to acquire Plaid, a nascent competitor developing a disruptive, lower-cost option for online debit payments. If allowed to proceed, the acquisition would deprive American merchants and consumers of this innovative alternative to Visa and increase entry barriers for future innovators.”

  • Buying Fuel May Result In Stolen Credit Cards, Warns Visa

    Buying Fuel May Result In Stolen Credit Cards, Warns Visa

    High fuel prices aren’t the only thing travelers need to worry about at the pump. Visa has issued a warning that anyone who has pumped gas may have had their credit card information stolen.

    Visa has been tracking three different types of attacks “targeting merchant point-of-sale (POS) systems that were likely carried out by sophisticated cybercrime groups. Two of the attacks targeted the POS systems of North American fuel dispenser merchants.” At least two of the attacks also appear to have been carried out by a group known as FIN8.

    The cyber criminals gained access to the target’s network and then installed malware that specifically harvested credit card information. In at least one of the attacks, the “threat actors compromised the merchant via a phishing email sent to an employee. The email contained a malicious link that, when clicked, installed a Remote Access Trojan (RAT) on the merchant network and granted the threat actors network access. The actors then conducted reconnaissance of the corporate network, and obtained and utilized credentials to move laterally into the POS environment.”

    In the second type of attack, magnetic swipe cards were targeted, although chip-based cards were not.

    Ultimately, Visa concludes by expressing concern that cyber criminals are increasingly targeting brick-and-mortar businesses, and fuel stations in particular, with relatively sophisticated attacks. These attacks are much more involved than simply skimming credit card information via pay-at-the-pump terminals. Visa recommends fuel stations moved to chip readers as soon as possible to increase security.

  • Facebook Libra Backers Back Out

    Facebook Libra Backers Back Out

    A week ago we covered a Wall Street Journal article highlighting potential trouble for Facebook’s Libra cryptocurrency, as multiple backers were reconsidering their commitment to the project.

    Fast-forward a week and things have only gone from bad to worse. As Bloomberg reports, PayPal was the first to announce they were leaving on October 6, with Visa, Mastercard, eBay, Stripe and Mercado Pago following suit. Each of these companies provided a brief statement, expressing their interest in monitoring Libra’s progress. Nonetheless, without these companies’ support, Libra is left without a single payment processor in the U.S.

    The high-profile exits follow increased pressure from U.S. senators, who cautioned Mastercard, Visa and Stripe about backing the currency. Since Facebook first announced the Libra project, governments around the world have been critical of the endeavor, expressing concern about how the cryptocurrency will impact financial markets. In the days leading up to the companies pulling their support, senators cautioned them about how Libra could impact their broader payment business as well.

    Critics are mixed about whether these high-profile defections spell doom for Libra or a new opportunity. Michael Pachter, an analyst for Wedbush Securities, told Bloomberg TV that he “didn’t think Facebook can do this by itself. Short of a big bank stepping in like JPMorgan, I don’t think this could ever happen.”

    As SiliconANGLE highlights, however, several other companies emphasized their support, “including Kiva, Mercy Corps, Andreessen Horowitz, Anchorage and Xapo. Arguably, the change sees Libra look more like a startup now with the lack of mainstream company support.”

    The news comes days before the Libra Association is scheduled to meet to sign a charter agreement. It’s probably a safe bet there will be far more to talk about in the wake of these defections.

  • Libra Currency Backers Reconsidering Involvement

    Libra Currency Backers Reconsidering Involvement

    The Wall Street Journal (WSJ) is reporting that financial backers of Facebook’s cryptocurrency, Libra, are having second thoughts.

    According to sources familiar with the situation, Visa and Mastercard—both members of the Libra Association created by Facebook to oversee the project—are having doubts about continuing to back the currency amid criticism from various governments. Neither of the financial companies want to risk the investigation and regulation that seems all but certain should Libra move forward.

    Since Facebook’s announcement that it would be rolling out Libra in June 2020, governments around the world have expressed concern about the cryptocurrency. Fears include the possibility that Libra could undermine government-backed currencies, erode consumer privacy—an area where Facebook already has a poor track record—and give the social media giant even more influence and power than it currently has.

    Lawmakers in the U.S. have asked Facebook to delay the currency’s launch until an investigation can be done, while Germany and France have vowed to block it from Europe altogether. Even governments that are not opposed, such as Ireland, are still cautious about the repercussions that come with the currency.

    If the WSJ’s article is any indication, Facebook may have to shore up confidence in the currency long before it ever deals with government regulation.

  • Visa Credit Cards Launches “Visa Checkout” Mobile Pay Service

    Have you ever gotten so frustrated by punching in your credit card number on a tiny mobile screen while shopping online that you just gave up and abandoned your electronic shopping cart?

    If so, Visa is attempting to make your life easier.

    Or at least make you buy more things.

    The service is called “Visa Checkout”, and it launched last week with a select few retail partners (the big names are Neiman Marcus, Pizza Hut and Staples) and according to the Associated Press, banks are lining up to support the service too.

    For all the hubbub, “Visa Checkout” is essentially a new version of V.me, which is being abandoned by retailers in favor of “Checkout”. The company claims that this means progress.

    “Visa Checkout is simpler than any other method,” said Sam Shrauger, senior vice president of digital at Visa told ComputerWorld. “People don’t want a wallet; they want to pay and be done.” The comment was a jab at similar services like Google Wallet which requires loading and unloading of funds, a process Visa is trying to avoid in the interests of saving the user time.

    “When people come to our site, they are not looking to see what we do. They have a specific need to get that pizza as soon as possible,” Baron Concors, chief digital officer at Pizza Hut, said.

    Matthew Frankel of The Motely Fool speculated that this app may herald in the end of physical credit cards. “The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player,” Frankel wrote, “When it does, a handful of investors could stand to get very rich. You can join them — but you must act now.”

    Image via Visa, YouTube

  • Nigella Lawson Granted Visa to New Zealand

    Nigella Lawson was denied entry into the United States from London earlier this month. Now New Zealand has granted her a visa to enter that country. Lawson was supposed to work in L.A on the cooking show The Taste, but because of her recent admission of drug use she was denied entry–or so it is believed. U.S. officials have declined to state why Lawson was prevented from flying to L.A. from London. New Zealand officials had the following to say about her entry into their country.

    “As Ms Lawson has been excluded from another country, namely the United States, she was ineligible to be granted a visa to enter New Zealand unless given a special direction,” the statement said.

    “A special direction was considered and granted and subsequently her visa application was approved.”

    Nigella Lawson admitted during a court case last year that she had previously used both cocaine and cannabis. British newspapers speculate that this is the reason she was denied entry into the United States. A spokesperson for the U.S. embassy in London confirmed that Lawson was denied permission to fly to Los Angeles more than two weeks ago but declined to say why because of privacy reasons.

    Lawson is in New Zealand for work as well. She is filming a TV ad for a chocolate manufacturer there.

    Do you think Nigella Lawson’s admission of drug use is the reason she was denied access to the United States? Is this something that will eventually be formally announced? It will be interesting to see if she is permanently denied entry, and if that is the case, who will replace her on The Taste? Anthony Bourdain serves as a judge on The Taste with Nigella. He is appalled that she wasn’t allowed back in to the U.S.

    If Lawson truly is a drug risk, why is New Zealand allowing her there? Perhaps their drug laws are less strict than those in the United States?

    Hopefully in the next few days more information about Lawson’s denial into the U.S. will be explained so people can rely more on facts and less on conjecture.

    Image via Wikimedia Commons

  • Walmart Sues Visa Over Credit Card Fees

    Walmart Sues Visa Over Credit Card Fees

    Retail giant Walmart has filed suit against credit card giant Visa. The Arkansas firm is seeking $5 Billion from Visa for conspiring with banks to rig the fees that merchants pay for accepting Visa cards.

    According to AFP, Walmart alleges that Visa worked “to illegally fix the interchange fees and inflate the network fees that Walmart and other merchants pay on Visa charge card transactions.”

    Walmart, which is no stranger to using its own size to maneuver pricing and terms, further says that “Visa has used its price-fixing schemes to establish, maintain and enhance its long-held market power.”

    According to the BBC, when Visa paid out a settlement to other affected retailers for a total of $5.7 Billion over this kind of activity, Walmart and some others opted out of the settlement, preferring to seek their own awards in court.

    According to the official court-ordered website about the case, that settlement awarded money to “merchants who have accepted Visa and MasterCard at any time since January 1, 2004.”

    “On December 13, 2013, the U.S. District Court for the Eastern District of New York approved a Class Settlement among merchants, Visa, MasterCard and other Defendants in a class-action lawsuit. The lawsuit claims that merchants paid excessive fees for accepting Visa and MasterCard because of an alleged conspiracy among the Defendants.”

    Walmart says that the $5 Billion they are seeking would just cover the damages to their business that they say resulted from Visa’s rigging between 2004 and 2012. Even though they are huge themselves, Walmart says they could not simply refuse to accept Visa cards because that “would result in an unacceptable decrease in sales.”

    Visa itself had sued Walmart last year in an effort to prevent Walmart from filing the suit.

    Image via YouTube

  • Microsoft Launches ‘Bing Offers Card-Linked’ Deals

    Earlier this year, Bing announced Bing Offers, its latest foray into the local deals space. The product launched across the United States. Today, the company has announced an expansion of that with “Bing Offers Card-Linked”.

    This is a program they’re launching in Seattle only for the time being, but more cities will follow soon.

    “We found that there is some frustration with having to make major commitments to create coupon deals along with additional investment in infrastructure and training to manage redemptions. Merchants also wished they had more direct control on managing promotions with better insights into consumer engagement,” says Microsoft’s Erik Jorgensen.

    They created Bing Offers Card-Linked to help “minimize this frustration,” partnering with First Data, Visa and MasterCard.

    Basically what it does is gives merchants the ability to provide offers to consumers via their credit cards or other payment cards, so the customer doesn’t have to use a coupon, promotion code or voucher.

    Bing Offers Card-Linked

    Benefits for advertisers, as described by Microsoft, include broad reach (ads across Outlook.com, windows Phone 8, Skype and Bing Apps), a CPA model, better engagement, controlled discounts and “frictionless” redemption.

    So far businesses taking advantage of Bing Offers Card-Linked include: Pizza Hut, Mooyah Burgers, Buca Di Beppo, as well as some other SMBs in the spas, automotive, espresso shop, restaurant and retail store verticals.

    Microsoft expects to update the list of available cities later this year.

  • Wall Street Ends 5 Day Skid; Stocks are Up

    The stock market saw a surprise surge last Wednesday after the Federal Reserve announced that it would continue its bond-buying program. That up-swing did not last long, though; The stocks dipped drastically on Thursday, and Wall Street has seen a losing-streak the previous 5 days.

    There was positive news for Wall Street today, however. The Dow Jones, S&P, and Nasdaq all showed positive gains for the day, with increases of 0.41%, 0.18%, and 0.61% respectively.

    Along with the reviving stocks, the US economy also saw a reviving job market with unemployment reports coming back positive – Initial claims dropped 5,000 to 305,000, with the four-week average of new claims dropping 7,000 to 308,000. These numbers make jobless claims the lowest they have been in 6 years.

    Part of the surge has been caused by two new companies that were recently added to the Dow – Nike, and Visa. Visa was up 1.3%, while Nike closed with gains of 4.1%.

    Investors link the 5 day losing-streak to the fiasco that is currently happening in Washington concerning the looming government shutdown. Part of today’s surge, however, may be due to the air of compromise or negotiation that has rumored to have occurred in D.C. Republican Senator Jeff Sessions, ranking minority member of the Senate Budget Committee, said that there will be no government shutdown or default. Meanwhile, John Boehner urged the Republicans to be flexible to options that will allow the government to continue to function.

    While the stock market showed signs of improvement today, the closing figures were not spectacular. This has led many, such as Ron Florance, deputy chief investment officer for Wells Fargo Private Bank, to conclude that the Federal Reserve was right in continuing its bond-buying program: “It’s fair to say that the Fed got it right by delaying (cuts to the stimulus). Growth is uninteresting and subdued.”

    Phil Orlando, chief equity market strategist at Federated Investors in New York, believes that this market growth shows, however, that the Federal Reserve will be able to cut back it’s program soon: “If today’s number was a good number, that means when we see the job report on October 4, that number ought to be pretty strong. That’s going to give us another clue as to the underlying strength of the labor market, which was one of the reasons the Federal Reserve chose not to commence the taper.”

    Still, others are worried that the recent rise in stocks is the result of temporary fixes: “Worryingly, it looks like even this relatively modest growth is only being achieved by firms cutting prices,” stated Chris Williamson, the chief economist at Markit.

    Whatever the reason, higher prices in the stock market and lower unemployment rates can only be views as positive for the US. With its credit-rating on the line due to the debt-ceiling crisis and potential default, any inducement for foreign investors to enter into the American market is a good thing.

    Image via Wikimedia Commons

  • Selena Gomez Won’t Perform Due To “Anti-Gay’ Visa

    Selena Gomez had to cancel a string of European concerts due to conflicts with obtaining a Russian visa. The 21-year-old singer will not be performing at any of the Russian venues previously considered nor will she sing in Belarus and Ukraine. Though she was expected in St. Petersburg and Moscow, both performances have been cancelled as a result of complications stemming from obtaining a visa in lieu of recent anti-gay laws.

    Last year, Madonna and Lady Gaga used their performances at Russian concert halls to promote gay rights. Madonna distributed pink ribbons to her concert-goers as a symbol of support for gay pride while Lady Gaga said, “You can be gay in my house,” to those in attendance at her concert.

    A representative for Russian Entertainment Academy, who was responsible for organizing the concert, shared the following comment. “Up to the last moment, we thought the problem would be resolved, but it turned out that things aren’t so simple in our country,” the statement read.

    John Becker is the man responsible for starting a petition through Change.org to encourage standing up for the rights of the Russian LGBT community members. He wrote the following on Belerico.com in order to further promote the cause. “Russian officials are undoubtedly anxious to avoid a repeat of recent concerts by fellow pop superstars Madonna and Lady Gaga, both of whom violated laws banning so-called ‘gay propaganda’ by making statements in favor of LGBT rights. The Russian government is clearly on edge and aware of the bruising its reputation has taken in the wake of their anti-LGBT crackdown,” he shared on the website.

    Reports claim that Selena Gomez was spotted earlier this year at a Los Angeles gay pride festival; however, organizers of the Russian concerts are unlikely to have known about this. Selena appears to have enjoyed her performances even though she was unable to perform in Russia.

    [Image Via Wikimedia Commons]

  • Alcoa, Bank of America, and HP Removed from Dow

    Alcoa, Bank of America, and HP Removed from Dow

    Starting September 23, Alcoa, Back of America, and HP will no longer be among the 30 companies listed on the Dow Jones Industrial Average. The changes “were prompted by the low stock price of the three companies slated for removal and the Index Committee’s desire to diversify the sector and industry group representation of the Index,” according to the Dow Jones Indices. These three companies will be replaced by Nike, Visa, and Goldman Sachs. This is the biggest move of companies in and out of the Dow Jones since 2004, when American International Group, Pfizer Inc, and Verizon Inc. replaced AT&T Inc., Eastman Kodak Co., and the International Paper Company.

    When one looks at the math (Unfortunately, that is what one must do in order to understand the stock market, which also happens to be the reason none of us are rich from stock investments. Math… sigh.), it is evident as to why the change was made. HP probably has the biggest argument toward not being removed considering their stock is up 50% this year. However, their overall stock price is down $27 from 2010. Bank of America shares have decreased $35 since 2007, and shares of Alcoa stock have decreased $32 from 2007.

    This doesn’t mean that one should sell all their shares of these companies, though. David Blitzer, the managing director of the Dow Jones, stated that “Changing the stocks in an index is not an investment recommendation… It is done to improve the index, to make it a better representation of the market overall.” So while Alcoa, Bank of America, and HP may be being removed from the Dow, it doesn’t mean the companies are dead.

    Alcoa means to prove that they are still alive and fighting. The aluminum-producing company, which has been part of the Dow for 54 years, will not let its recent slide bring an end to the company nor deter investors. The reason for Alcoa’s recent demise has to do with the demand for aluminum. While it is true that the United States exports a lot of metal and minerals to China to support their intense technology market, China has lessened its demand for aluminum over recent years by becoming self-sustainable. So where does that leave Alcoa? The aluminum company hopes to abandon the aluminum business in the US soon (where the power it takes to smelt ore is simply too expensive) and instead pursue making lighter-weight components for vehicles. If Alcoa wishes to support another coup in South America, it better hope that it can make the transition soon. (Alcoa has long been linked with supporting the coup attempts of Salvador Allende in Chile during the 1970’s [One probably shouldn’t make allusions when they have to be explained. They might lose effect.])

    Image via Twitter

  • The Angry Birds Visa Card Is Now A Reality

    Back in November, news came out that Rovio had partnered with Kaiku on Angry Birds prepaid Visa cards. Today, Kaiku announced the launch of the cards, which come in four designs.

    The cards are available in: Red Bird, Yellow Bird, Bomb Bird and Bad Piggies – the basic designs you would want.

    Angry Birds Credit Card

    “We’re excited to be working with Kaiku on this fun new way to bring Angry Birds into the physical world and fans’ everyday lives,” said Rovio CMO Peter Vesterbacka.

    Kaiku CEO Jon Round added, “Kaiku’s partnership with Rovio allows us to continue taking our prepaid Card to a broader audience by empowering consumers with differing needs to maximize their financial future. The collection of Kaiku Angry Birds Cards will not only resonate with the vast number of Angry Birds’ gaming fans, but also consumers who are looking for a smart and affordable financial option in a dynamic and colorful prepaid card.”

    I’m not sure at exactly what point Angry Birds became a true pop culture phenomenon. It was certainly quite some time ago, but between this and the upcoming cartoon series, it looks like it won’t be going away anytime soon. Oh yeah, there’s also a movie coming out.

  • Foursquare Partners with Visa, MasterCard for Amex-Like Offers

    In early 2011, Foursquare and American Express launched a partnership that allowed card-owners to score discounts and cashback by using Foursquare to check-in and spend at certain participating businesses around the country. The program made a big splash on Small Business Saturday (the shopping day after Black Friday) and featured offers like “spend $25 get $25 off.”

    Later, Foursquare and AMEX extended those deals, even launching them across the pond.

    Now, Foursquare is making a move to expand these offers to more types of plastic.

    The company has announced that they will be extending these types of specials with both Visa and MasterCard, and most debit cards to provide similar check-in offers alongside participating businesses.

    Foursquare is working with payment solutions company First Data and CardSpring to expand the seamless specials.

    The AMEX/Foursquare deal has morphed over time to start producing more revenue for Foursquare, and the company says that the new deals with Visa and MasterCard will earn them a fee for every offer redeemed. It’s unclear whether that will be a flat fee per offer claimed or some sort of percentage deal.

    “This is going to be a pretty core part of our revenue model going forward,” said Foursquare Product Manager Noah Weiss.

    According to AdAge, the first offer that should be available today involves $1 off for $10 spent at 8,000 participating Burger King locations.

    Since this is going to be a “core part of the revenue model,” it shouldn’t surprise you that Foursquare is also making these credit card deals more prominent within the app.

    All you’ll have to do is sync your Visa, MasterCard, or AMEX with your Foursquare account to start earning cashback on purchases made through the app.

  • Hacker Releases Visa and Mastercard Information Stolen From Chase Bank

    According to a hacker who calls himself Reckz, or Jeremy, he has gained access to Visa and Mastercard files through several large banks.

    He then released the information minus several critical aspects including card number, security code, and expiration date. The message was posted via Pastebin on the 18th of June.

    Reckz comments in his Pastebin post about the bank hacks and the release of information:

    “Today’s target is VISA & Mastercard, I will be only leaking a portion of the credit card information, as I cannot leak the entire data, it’s too large, and this is the certain proof that i’ve hacked into VISA & Mastercard….”

    “I’m also censoring the credit card information such as CC Number, Secret Code, Expiry date for security measures, I also edited the way the information will look, the original one looked bullshit.”

    He further explains that his purpose for hacking the banks involves good old fashioned curiosity rather than some malicious intent. He also claims to have no special talents, just passionate curiosity.

    He mentions Chase Bank as one of the institutions he infiltrated, but suggests there are several more involved. ZD Net speculates the hacks could be related to a credit card security breach that occurred in late March where big banks sent out letter to customers that a security leak may have compromised their information.

    According to another message on Pastebin from Reckz posted on the 12th of June, he is retiring from the hacking business, realizing he has no real purpose for his unusual skill. He says he will use his talents for only good purposes from here on out.

    Reckz comments on his retired status:

    “I’ve realized that I am doing this shit for nothing.”

    “I am officially..a whitehat.”

    “I will use my intelligence for good.”

    “I’ve done over 50 large hacks, and leaked many essential information, I am sorry if I harmed you, or affected your families.”

    “This is my departure from the hacking scene.”

    In his post from yesterday, he reminds us that of the purpose for his hacks; all in the name of curiosity and challenge. What I have to wonder is whether his latest hack falls in line with his new mission to use his hacking prowess for only good. Perhaps he hopes to reveal to the general public just how antiquated bank security really is.

    If he doesn’t have any overarching goal or message, and his hacks are just for curiosity sake, he probably should retire. He really doesn’t, “fulfill your (our) ‘lulz’ attention with some excitement & entertainment!”, as he suggests.

    Visa and Mastercard are most likely very interested (and probably Chase Bank as well), the general public however, doesn’t really care. Find something more exciting to do, you bore me Reckz.

  • Credit Card Processor Hack Update: 1.5 Million Cards Compromised

    Last week it was reported that a major U.S. credit card processor’a security had been breached and that millions of credit card numbers and data were stolen. The specific processor that was the victim of the security breach and the full scope of the data theft have now been revealed.

    On March 30, Global Payments Inc., a credit card processor based in Atlanta, confirmed unauthorized access into its processing system. The company believes that 1,500,000 card numbers may have been stolen, but that cardholder hames, addresses, and social security numbers were not taken. Having had multiple information security and forensics firms investigate the incident, Global Payments believes it to be contained.

    “We are making rapid progress toward bringing this issue to a close. Our nearly 4,000 employees around the world are focused on providing exceptional service. We are open for business and continue to process transactions for all of the card brands,” said Global Payments CEO Paul R. Garcia.

    Global Payments provides electronic processing for merchants, Independent Sales Organizations, financial institutions, government agencies, and corporations. It processes credit and debit cards, purchasing cards, gift cards, and electronic checks.

    There is no word yet on any progress finding those responsible for the data theft. What might be done with the stolen data is unknown. Global Payments also did not make any recommendations for consumers whose card numbers may have been compromised.

  • MasterCard and VISA Warning Banks of Massive Processor Breach

    Krebs on Security, a security news and investigation site, is reporting that both VISA and MasterCard are warning banks of a security breach at a U.S. credit card processor. The breach is said to be ‘massive’ with as many as 10 million card numbers possibly compromised.

    The alerts began going out late last week, but the actual security breach happened between January 21 and February 25 of this year. Banks were told that “full Track 1 and Track 2 data was taken,” which is enough information to counterfeit new credit cards.

    Only MasterCard is speaking out so far. “As a result, we have alerted payment card issuers regarding certain MasterCard accounts that are potentially at risk,” the company said to NewsCore, according to the New York Post.

    According to the Wall Street Journal, a MasterCard spokesperson said, “MasterCard’s own systems have not been compromised in any manner.”

    VISA has not issued any statements, and there is no word yet on which card processor was compromised. Krebs stated that banks are analyzing transaction data to determine any commonalities in purchased made on the compromised cards.

    From the Krebs article:

    Sources at two different major financial institutions said the transactions that most of the cards they analyzed seem to have in common are that they were used in parking garages in and around the New York City area.

    It’s not clear how many cards were breached in the processor attack, but a sampling from one corner of the industry provides some perspective. On Wednesday, PSCU — a provider of online financial services to credit unions — said it alerted 482 credit unions that appear to have had cards impacted by the breach, and that a total of 56,455 member VISA and MasterCard accounts were compromised. PSCU said fraudulent activity had been detected on a relatively small number of those cards — 876 accounts — and that the activity was geographically dispersed.

    Yesterday I shared an infographic on the largest hacking scandals in the past decade. Financial institutions must be hoping this latest one is dealt with swiftly and with a minimum of disruption to the financial industry.

    (via Krebs on Security)

  • Marvel and Visa Team Up To Teach Kids About Finances

    Marvel Comics and Visa Inc. have teamed up to create a new, one-of-a-kind financial literacy comic book called Avengers: Saving The Day. Combining Marvel’s iconic characters, including the Avengers and Spider-Man, with Visa’s financial literacy expertise, this free comic introduces children to basic money concepts.

    “In today’s increasingly complex financial world, we must find creative ways to help parents and educators teach children the fundamentals of money management,” said Jason Alderman, Senior Director of Global Financial Education, Visa Inc. “A comic book with Spider-Man and the Avengers is the perfect device for making the sometimes dull subject of financial literacy entertaining and educational,” Alderman added.

    This financial literacy comic was created by a well-known team of Marvel storytellers, including veteran writer James Asmus (Generation Hope). Fan favorite Andrea Di Vito (Avengers Academy) designed the comic which features the world’s most popular superheroes including Iron Man, Thor, Spider-Man, Hulk and Black Widow. The collectors’ item comic also features a new cover by comic’s legend Tom Grummett. “A wise man once said that with great power there must come great responsibility and that certainly applies to managing your finances,” said Marvel editor Bill Rosemann. “In an uncertain world, understanding how to save and properly budget your hard-earned money is one of the keys to personal success. The Avengers are not only the world’s greatest heroes, but they also know a thing or three about financial health. After all, Iron Man hasn’t managed his vast wealth of Stark Enterprises by accident, and as Spider-Man learns, you don’t have to be a millionaire to be a saving hero,” said Rosemann.

    Avengers: Saving The Day is a 16-page comic book with a fast-moving plot revolving around Spider-Man and the Avengers learning about personal finance, while battling the evil Mole Man during an attempted heist. The book is accompanied by a teacher’s guide that uses Marvel’s characters to introduce children to basic financial concepts such as budgeting, saving and banking. Available at no cost, both in print and online at www.practicalmoneyskills.com/avengers, Avengers: Saving The Day is being released around the world and is available in Arabic, Bahasa Indonesia, Chinese, English, French, Portugese, Russian and Spanish.

    Comic Book Companies and Financial institutions are not usually linked together. Occasionally you will get something like the great Visa commercial with comedian Jerry Seinfeld and the legendary Superman.