Target data breach may have compromised some local customers' cards

Some Southeast Missouri residents are among the 40 million Target customers whose debit or credit-card accounts may have been compromised by a data breach earlier this month, a local banker said.

Kevin Greaser, community bank president for Alliance Bank, said the bank has been notified that some debit-card customers' information may have been compromised, but so far no instances of fraud have been reported.

"We have not been informed of any fraud that has occurred yet," Greaser said.

He recommended customers monitor their accounts closely and contact the bank immediately if they notice any suspicious activity.

"We will react immediately to an incident if we discover that one of our cardholders has had fraud committed on their account," Greaser said. " ... We are always committed to reducing as much as we possibly can our cardholders' liability."

Officials at several other local banks were not available for comment Tuesday, so it was not immediately clear how their customers may have been affected.

The Secret Service and Department of Justice are investigating the data breach, which occurred between Nov. 27 and Dec. 15.

According to Target's website, the company found malware on point-of-sale systems in its American stores. Customers who made purchases online or outside the United States are not affected, the company reported.

Under federal law, cardholders are not liable for transactions made on stolen credit-card numbers, and they are liable for transactions made on stolen debit-card numbers only if they fail to report the unauthorized transactions within 60 days of the time the card issuer sends a statement, according to the Federal Trade Commission website.

Individuals could, however, be liable for bad-check fees if they unwittingly bounce checks as a result of fraud, Greaser said.

Many banks -- including Alliance -- will work with customers under such circumstances, but the faster they report the fraud, the better, Greaser said.

"We would most likely, in a situation where someone has committed fraud in your account, and you're unknowingly bouncing checks, we would work with you to reduce your fees," he said. "You've got to get into the bank right away so we can identify what happened. ... All the bankers I know in this community are wonderful to deal with, and they're going to work with their [customers]."

The breach has created potential headaches for holiday travelers who rely on plastic to pay for gas, lodging or other necessities.

Greaser said if someone steals account information and uses it to withdraw money or make purchases up to the daily limit, a cardholder could end up unable to access the remaining money in the account.

He recommended anyone traveling during the holiday season carry an alternate form of payment just in case that happens.

"Probably good backup if you're traveling is carrying some cash with you," Greaser said.

He also advised holiday travelers to check their balances just before they leave, as soon as they return and -- if possible -- during the trip as well.

"We have a lot of technology to let you verify your information in your bank [account]," Greaser said. "Take advantage of all the tools your bank's offering you, and manage your finances."

Darin Hickey, public information officer for the Cape Girardeau Police Department, echoed that advice.

"Diligence is the number one," he said in an email message Tuesday. "Keep an eye on all your accounts. Know what you spend and verify with your account. Report suspicious activity on your accounts."

Hickey said he has not heard any reports of fraud stemming from the breach.

Alliance Bank customers who are concerned about the security of their accounts can come in during regular business hours and get a replacement card on the spot, Greaser said.

This spring, many local banks -- including Alliance, The Bank of Missouri, Cape Regional Credit Union, First Missouri State Bank and U.S. Bank -- wound up replacing hundreds of cards after hackers got into Schnucks Markets' data systems and compromised about 2.4 million customers' credit and debit cards.

On Monday, Missouri Attorney General Chris Koster's office sent out a news release warning of secondary scams that have arisen in response to Target's data breach.

According to the release, the breach has spawned identity-theft scams in which people posing as Target, bank or credit-card company representatives contact consumers about the breach and ask for personal or financial information.

"Don't give any information over the phone -- DOB [date of birth], Social [Security number], address -- unless you are the one that initiates the call, and you know who you are talking to," Hickey advised.

epriddy@semissourian.com

388-3642

Protect yourself

Experts offer the following tips if you think your credit-card number may have been compromised:

* Review account statements promptly. You are not liable for transactions on stolen debit-card numbers if you report them within 60 days of the time the card issuer sends your statement, according to the Federal Trade Commission website.

* Contact credit reporting agencies for a copy of your credit report. To receive a report, call Equifax at 800-525-6285, Experian at 888-397-3742 or TransUnion at 800-680-7289.

* Monitor your credit. Target is planning to offer free credit monitoring services to customers affected by the data breach. According to its website, the company will contact customers with details about how to use the service in the next few weeks.

* Do not give personal or financial information to anyone who contacts you by phone or email. The Missouri attorney general's office has warned of scams in which people pose as Target, bank or credit-card company representatives to trick customers into giving out information that can be used for identity theft.