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Card Hacking (3/7/00)
FULL STORY:
Using credit cards on the Internet is at least as safe as using them in the
real world, but it is not bulletproof. A Buffalo, New York-based Internet
service is the latest victim of hackers seeking to steal credit card numbers.
Internet Management Services confirmed last week that approximately 2,000
consumer records, which contained personal information and credit card
numbers,
were lifted from their Web site called SalesGate.com. The company says the
stolen card numbers were posted on the Internet. The firm says it has notified
its customers of the security breach and directly notified the card issuers
affected. The SaleGate.com Web site guarantees it will fully cover any losses
from credit card numbers stolen from its site. The SalesGate.com attack
follows
a similar incident in January, whereby CT-based eUniverse, Inc. reported the
theft of more than 300,000 credit card numbers from its CD Universe Web site.
Meanwhile surfers using stolen cards to make purchases on the Internet has
become a real menace for some e-tailers. Internet travel agency, Expedia,
announced last week it is setting aside $4 to $6 million to cover fraudulent
transactions. The company says the fraud was committed by professional
criminals who illegally obtained credit cards from non-Expedia.com sources and
used those stolen cards to purchase travel online. The charge represents the
company's estimate of unreserved fraudulent activity to date and is less than
one half of one percent of tickets sold. The gross bookings to date on the
Expedia.com site total over $1 billion, and the company's net revenues total
over $85 million.
Consumers can protect themselves from becoming victims by making sure they
know who they are dealing with when making online transactions. The same
applies in the real world.
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