Honesdale bank reissues bank cards to all customers

By FRITZ MAYER

HONESDALE, PA — A local bank became one of the latest financial institutions to replace bank debit and ATM cards because hackers were able to gain information about some bank debit and ATM cards.

Mark Graziadio, a vice president at Honesdale National Bank (HNB), said that as of March 2, the bank had replaced some 8,000 cards because of fears hackers had stolen card numbers that could be used to make fraudulent purchases.

One customer, who preferred to remain unidentified, said that she found out on the morning of March 1 that her “account was wiped out.” She said later that the bank had since restored her funds, but she expressed frustration over the matter, and said she was considering ending her relationship with the bank.

Graziadio said that since the data was not obtained from any intrusion at HNB, bank officers have no way of knowing exactly how the perpetrators acquired any information about the cards, but they became aware of a problem with the cards in the middle of February, and have been working to solve the problem. The FBI was informed and is investigating with other law enforcement agencies.

HNB, however, is just one financial institution that has recently reissued bank cards because of security breeches. The Associated Press reported on March 2, that TD Banknorth, a company that serves eight states in the Northeast, is issuing up to 200,000 new cards to customers due to fallout from a hacking scheme, and banks elsewhere in the country are following suit.

According to various press accounts, at the heart of this rash of reissues is TJX, the parent company of the TJ Maxx discount chain of stores. The company notified credit card companies and banks in late January that hackers had gained entry into their computerized system, and had been able to get information about credit and debit cards issued by various banks that had been used in the stores.

The hackers also gained information that allowed them to create card numbers that had not been assigned by the financial institution, which could be successfully used for online purchases and other uses.

In the meantime, TJX discovered that the hackers have had been stealing customer data since as early as 2003. The intrusion involves the stores T.J. Maxx, Marshalls, HomeGoods and A.J. Wright.

The incident has set off a round of finger pointing between credit card companies and retailers. The credit card companies claim that retailers keep more personal information than necessary in their electronic payment systems, which enabled the hackers to commit the theft.

Critics argue that the nation’s five million retailers can’t be expected to become security experts, and instead the credit card companies should update their payment systems.

In the meantime, major retailers and banks have hired electronic security experts to help manage the problem.

Consumers who feel they may have been affected by this incident can call a special toll-free help line that TJX has established at 866/484-6978, or visit www.tjx.com for more information.