The cost of the massive payment card hack that hit the Schnucks supermarket chain in recent months could cost the company $80 million in Illinois alone.
Court records show Schnucks wants to move an Illinois lawsuit related to a security breach affecting credit and debit cards of its customers to a federal court.
Schnucks has said the breach of up to 2.4 million cards dated to December and came to light in March. The company said the lawsuit filed against them on behalf of a Belleville shopper is meritless.
We will hear more from Scott Schnuck today in a you tube video about a credit and debit card breach. The grocery chain now says 2.4 million Schnucks customers may have been compromised between December of last year and March 2013.
Schnucks says only the card numbers and expiration dates were stolen, not the credit card holder's identity.
“On behalf of myself, the Schnuck family, and all of our 15,000 teammates, I apologize to everyone affected by this incident,” said Scott Schnuck in a press release. “Over the years, technology has helped us deliver superior customer service, but it also introduces risks that we have actively worked to manage through compliance audits, encryption technology and various other security measures.”
The company also sent news outlets a timeline showing what happened and when. The company says it was told of an issue on March 15, formed a response team on March 19, contacted police on the 20th, began to identify the problem on the 28th, but did not communicate any concern to customers until March 30.
According to the company, “if you used your card at any one of the 79 affected stores between December 2012 and March 29, 2013, your card could have been accessed.” Click here for the FULL LIST.
The company has declined to do interviews due to legal concerns over pending lawsuits. The company is preparing a video statement instead.
Schnucks has set up a call line for customers to use for any questions. The number is 1-888-414-8022. The line is open Monday through Friday from 9 a.m. to 5p.m. and the weekend of April 20-21 from 9 a.m. to 4 p.m.
ST. LOUIS (AP) — A discovery made by two Washington University scientists could play a role in preventing credit card fraud.
Marcel Muller and Ron Indeck were attempting to shrink bits of data onto a hard drive in the mid-1990s when they learned that magnetic media has what amounts to a fingerprint.
Tiny signals are present on the magnetic medium that comprises both hard drives and the strips on the back of credit cards. If the unique fingerprint on those strips is compared to fingerprints in a database, fraud can be detected.
California-based MagTek has adopted the technology, seeding the market with millions of card readers that can detect the fingerprints. The company's chief executive says the technology just needs to be "turned on" and used.
ST. LOUIS (AP) — The Schnucks grocery store chain says it's found the source of a credit card fraud problem that has victimized dozens of people.
In a news release Saturday, Schnucks Markets Inc. announced that the computer forensic firm it hired discovered that a computer code was recording customers' credit and debit card numbers. The suburban St. Louis-based grocery says it's taken "comprehensive measures" designed to block further access.
CEO Scott Schnuck described what happened as a "cyberattack" and says the company is cooperating with authorities.
The chain learned March 15th that some customers had noticed unauthorized charges for credit cards they used at Schnucks. Shoppers were encouraged to pay with cash or checks until the fraud problem was resolved.
Authorities said many of the unauthorized charges were at out-of-state big box stores.