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From: Jeffrey Walton (noloader
gmail.com)
Date: Thu Jun 18 2009 - 06:02:54 CDT
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From the folks at Attrition and the DataLossDB.
---------- Forwarded message ----------
From: security curmudgeon <jericho
attrition.org>
Date: Jun 18, 2009 5:30 AM
Subject: Heartland Gets Religion on Security
To: dataloss-discuss
datalossdb.org, dataloss
datalossdb.org
http://blogs.wsj.com/digits/2009/06/17/heartland-gets-religion-on-security/
By Ben Worthen
Digits
The Wall Street Journal
June 17, 2009
Heartland Payment Systems CEO Bob Carr is an unlikely spokesman for tech
security. But that's what he's emerging as.
The credit-card processor suffered one of the largest data breaches ever
disclosed last year. But rather than taking the time-honored approach of
staying quiet and hoping that the negative publicity goes away, Carr is
talking openly about what went wrong, the problems with the industry's
security standards, and a new product his company developed to help
merchants protect customer data.
Heartland is the middleman in card purchases. When customers swipe their
cards at stores, the data on them are transmitted to processors like
Heartland, which passes them on to the banks that issued the cards. The
company announced in January that a hacker had managed to gain access to
this card information for the 100 million transactions it handles each
month.
Aside from the scale, the breach stood out from the hundreds of others
reported each year because Heartland had recently passed a security audit.
Carr says that one lesson he's learned from the breach is that the
industry's security standard, called Payment Card Industry or PCI, doesn't
go far enough. It's the "lowest common denominator," he says, adding that
the audit didn't detect the vulnerability that led to the hack even though
it had existed for years.
[..]
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