Data breach puts ’70,000 customers at risk’

Data breach puts ’70,000 customers at risk’

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Storetec Services Limited

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A data security breach in Ireland may have put as many as 70,000 members of the public at risk of credit card fraud fraud by cyber criminals.

Loyalty scheme management firm Loyaltybuild has revealed it was on the receiving end of a "sophisticated cyber attack" that caused a breach in its system last month.

It was initially detected on October 25th and the company said it "immediately engaged the services of an expert forensics security team" to try to rectify the problem, as well as informing Ireland's information commissioner and the police.

Reports indicate around 70,000 people's credit card details may have been leaked in the attack, of which 62,000 are in the Supervalu Getaway Breaks scheme – 6,800 of them in Northern Ireland. In addition to this, around 8,000 Axa customers in the Republic are believed to have been affected. Both companies have contacted their customers to warn them of the incident.

Of course, when cyber attacks take place it is often the case that the fraudulent activity is carried out swiftly, as this means money can be taken before the alert can be raised.

For any company that suffers such a data leak, there can be enormous damage. Credit card protection laws can shield consumers from loss, but there is more than just money at stake; in particular, firms can suffer reputational damage. For this reason, many companies might find they can benefit from having their data stored securely off-site in a facility that will come equipped with the best expertise and latest equipment for fighting cyber crime.

Loyaltybuild's statement noted: "Unfortunately, the threat of cyber-attacks is increasingly becoming a reality of doing business today and Loyaltybuild would like to sincerely apologise for any distress or inconvenience caused." This reality may do little to help the firm. Indeed, if attacks are more commonplace, the need to have an effective security system becomes even more important.

The recent Ernst & Young Global Information Security Survey 2013 found 96 per cent of company executives in the UK were worried their in-house security systems would not withstand a cyber attack. If these fears are justified, Loyaltybuild can expect to be in good company – albeit for all the wrong reasons.

Storetec News/Blogs “http://www.storetec.net/news-blog/data-breach-puts-70000-customers-at-risk”. Data breach puts ’70,000 customers at risk’. November 12, 2013.

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