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CU System
Network Solutions breach affects nearly 574000 cards
HERNDON, Va. (7/30/09)--A Web services provider that caters to small and mid-sized online retail businesses announced last week that hackers had broken into its servers and stolen information on 573,928 debit and credit card accounts from 4,343 customers during the past three months. Network Solutions, based in Herndon, Va., discovered in early June that hackers had gone into services that provide e-commerce services such as website hosting and payment processing to about half of its customer base. They left a malicious code, which has been removed. Credit unions could suffer some peripheral losses if members see fraudulent expenditures on credit or debit cards they used to purchase items from the retailers involved or if they have a number of members who need their compromised cards re-issued. "It was determined that the code may have been used to transfer data on certain transactions for approximately 4,343 of our more than 10,000 merchant websites to servers outside the country," Network Solutions said on www.careandprotect.com, a website the company created to deal with questions about the hacking. "The code may have captured transaction data from approximately 573,928 cardholders for certain date periods this spring. Exposure varied by merchant, but in all cases it took place sometime between March 12, 2009 and June 8, 2009. Transactions after June 8, 2009, were not exposed to the unauthorized code," the company said. The company said that so far, it had no reports or any other reason to believe that the stolen information has been misused. It removed the code promptly. All of the e-commerce servers are functioning properly and no servers supporting Networksolutions.com customers were affected. Network Solutions has begun notifying retailers affected and is offering to notify the retailers' customers as well. It also is offering to pay for 12 months of credit monitoring service through TransUnion for each consumer whose data were compromised.
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