SOUTH BEND, Ind. - 1st Source Bank said it would replace debit cards for all its account holders following a security breach. An official for the South Bend-based bank said it had not received any reports of suspicious activity.
"Out of an overabundance of care, we're reissuing new debit cards to all our customers," said James Seitz, senior vice president of consumer and electronic banking. A security consulting firm alerted the bank after discovering the breach on May 12, the day it occurred. The bank shut down its computer system and contacted authorities.
"We are working with law enforcement to find these bad guys, and we didn't want to tip them off," said Seitz. Last week, the bank mailed letters to customers asking them to monitor their accounts for suspicious activity.Seitz said the letters were not mailed sooner due to the "complex" nature of the investigation. The bank said it also was monitoring ATM transactions.
1st Source also said it had hired a firm to review its computer security and has made some changes as a result. The bank said it would offer a security service that normally costs $4.95 per month free for one year to customers who requested it.
"We're certainly not holding any of our customers financially responsible for any transactions related to this breach," Seitz said. The new debit cards are expected to arrive next week.
1 comment:
It's getting frightening that this keeps happening. There is a defined eCulture called The Business-Technology Weave that helps to influence employee behaviour as regards security of data. This is particularly relevant: http://www.businessforum.com/DScott_02.html . Some good stuff here too: www.david-scott.net . We use this book at work - I wouldn't recommend it if it wasn't making a tremendous difference. Given the mounting data breaches, I suppose it's only a matter of time before any specific one of us experiences a real headache - something much worse than losing a wallet, for example. I'd like my bank or any institution that deals with my personal data to read this book - every news item I read is merely a chronicle of the problem - no one ever documents a solution - well, I hope people stumble upon this book and its ideas.
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