Schnucks Says Credit Card Fraud Source 'Found and Contained'

By Kavita Kumar; Georgina Gustin | St Louis Post-Dispatch (MO), March 31, 2013 | Go to article overview

Schnucks Says Credit Card Fraud Source 'Found and Contained'


Kavita Kumar; Georgina Gustin, St Louis Post-Dispatch (MO)


Schnuck Markets Inc. said Saturday it had "found and contained" a breach into its payment system that led to widespread fraudulent charges on customers' credit and debit cards.

At least some customers said the news restored their confidence.

"I was going to pay cash, but I'm going to use my card now," said Sandi Reed, standing in line at the Schnucks on Mid Rivers Mall Drive in St. Peters. "I'm OK now. I feel safe."

A computer forensics team hired by the grocery store chain found evidence of computer code that captured magnetic stripe data on the back of customers' cards, Schnucks said in a statement. The chain said it was still working to determine how long the issue existed as well as how many customers and stores were affected.

Police investigators have logged at least 200 complaints from victims, who shopped at stores throughout the region, while area banks have reissued thousands of credit and debit cards over the past few weeks. Fraud victims who contacted the Post-Dispatch said they had been refunded for the fraudulent charges.

The grocery store chain said it had taken comprehensive measures to block any further unauthorized access to customers' cards. "After an extensive review, we confirmed that Schnucks was the victim of a cyberattack," Scott Schnuck, the company's CEO, said in the statement.

He went on to say that the security measures taken in the last 48 hours were designed to block the attack from continuing. But the company did not answer questions about when the breach occurred, where in its system hackers entered or what steps the company had taken to comply with industry security standards.

"Our customers can continue using credit and debit cards at our stores," Schnuck said in the statement. "We apologize for any inconvenience this may have caused our customers, and we thank each of them for their patience while we worked hard to investigate their concerns."

As consumers across the region reported fraudulent use of their cards in recent weeks, some law enforcement officials encouraged shoppers to use only cash or checks at Schnucks.

Investigators and fraud experts have said it could be some time before customers notice their cards have been compromised, so their investigations will continue. Typically hackers gain access to credit card information, then sell it on the Internet to second- and third-party buyers. The stolen information is often encoded into counterfeit cards, which are then sold on the black market. The sellers, however, may take months to sell the data after they gain access to it, which means more fraudulent charges could appear.

Investigators, including the Secret Service, which investigates financial fraud, have said they are waiting for the results of Schnucks' forensic investigation before they can proceed with criminal investigations. They continued to log new reports of fraud through Friday. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Schnucks Says Credit Card Fraud Source 'Found and Contained'
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.