US credit card security breach resolved for NAB customers

National Australia Bank (NAB) confirms it has contained any fraudulent activity for its customers as a result of the credit card security breach issue in the United States of America.

Customers at risk were contacted by the bank in January and February of this year and their cards were reissued.

How the issue unfolded
In the course of its normal fraud monitoring activity, the NAB first noticed suspicious activity on a number of credit cards in November and December 2004, where the customers had made transactions in the United States.

Further investigation narrowed down the issue in January to a suspected security breach at a particular bank or credit card data processor operating in the USA. The NAB immediately informed Visa International and then all members of the Australasian Risk Council. (The Australasian Risk Council includes all major credit card issuers in Australia and New Zealand as well as Visa International and MasterCard.)

The NAB expresses its thanks to ANZ and Visa International for working with them to progress the investigations at an early stage.

What it means for NAB customers
The NAB reassures customers, in light of the concern around this issue, that it does not believe they are exposed to an increased risk of fraud.

The NAB’s normal monitoring of card transaction activity has already enabled it to identify, cancel and reissue cards where fraud was experienced, or where there was a greater risk of fraud.

The NAB has not seen one instance of fraud as a result of this breach since February 2005.

As always, the NAB will stop fraudulent transactions or reimburse customers, with interest, for fraudulent transactions made on their accounts.

This week, Visa International and MasterCard issued lists of data relating to all Australian credit cardholders whose transactions have passed through CardSystems Solutions in the USA. 

While the NAB believes its action has already protected its customers from fraud, it is reviewing the official data in order to contact all customers involved.

In light of public concern, any NAB customers who have used their credit card in the USA in recent months and would like to have their card replaced as a precaution, can do so at no cost by contacting the NAB on 1300 650 456 between 8:00am - 8:00pm EST, Monday to Friday.

How the fraud works
All known fraudulent activity as a result of this breach has been the production and use of counterfeit cards.

In order to produce counterfeit cards, information stored in the magnetic stripe of the credit card is essential. Therefore, only customers transacting in the USA and physically using their cards at point of sale there were at risk of having their data used to produce counterfeit cards.

Credit card account details obtained from internet or telephone transactions do not contain enough information to produce a counterfeit card.

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