Wednesday, August 02, 2006

Dollar Tree Suspected as Point of Compromise in New Debit Card Breach

KCRA Sacramento is reporting that a large number of people have had their debit cards compromised in Northern California. They all have one thing in common, they used their card (legitimately) at Dollar Tree.

Dollar Tree is a nationwide chain with about 3100 locations that sells everything for a dollar, or less.

From the KCRA story:

Dozens of local victims have come forward in a massive debit card fraud investigation involving Dollar Tree stores.

Federal, state and local investigators are looking into hundreds of fraud complaints from people who suddenly found hundreds of dollars stolen from their bank accounts by a sophisticated ring of electronic bandits who recreated ATM debit cards and are believed to have stolen more than $600,000.

Although KCRA is local to Sacramento, they reported similar activity is suspected from another Dollar Tree location in Northern California (Modesto) and Oregon.

According to a previous article by KCRA, the Oregon breaches occurred in May and June. Of course, Dollar Tree isn't commenting, but is cooperating with law enforcement.

Current story, here.

Previous story, here.

There was another debit card breach recently, which started in Northern California and spread nationwide. At the time - although never admitted - speculation was that the point of compromise was Office Max.

Here is a post, I did on that:

Debit Card Breaches, A Growing Problem

In case you become a victim of debit card fraud, here is an excellent link from PIRG (Public Interest Research Group) on your rights.

Unfortunately - when it comes to our rights - debit cards don't seem to be as safe as credit cards.

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