Fraudulent debit card transactions hit some University of Michigan Credit Union customers
Fraudulent debit card purchases at an unidentified business caused the University of Michigan Credit Union to temporarily freeze the accounts of all users who made purchases at the business within the last 30 days.
A credit union executive confirmed today that the incident affected fewer than 200 customers.
It appears that someone at the business was using debit card numbers to make fraudulent purchases, said Jeff Schillag, the U-M Credit Union's vice president for marketing and community relations. He said the credit union's computers were not compromised and that customers would not lose any funds.
"I can absolutely say with 100 percent certainty that there wasn't anything on our end," he said.
He declined to say what business was suspected or discuss what law enforcement agencies were involved, saying that Visa is investigating the incident and bars its financial institutions from revealing details.
Schillag said the credit union has contacted all customers who made purchases at the business within the last 30 days. Those customers are being issued new cards.
"We’re just being diligent about fraud prevention," he said. "We were among the first to identify that this was happening, so we were taking the proper steps to protect our customers."
The U-M Credit Union, a nonprofit operated separately from the university but open to people who have a connection to the university, had $440.4 million in assets as of March 31.
The incident comes a month after Chelsea State Bank reported that it had been targeted by a "huge network" of criminals who used Chelsea State Bank customers' debit card numbers to make thousands of fraudulent transactions in a short period of time.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Grimey
Fri, Jun 10, 2011 : 7:52 a.m.
If you think hackers are robbing people, check out the Fed. Jus' Sayiin'.
Tru2Blu76
Fri, Jun 10, 2011 : 6:06 a.m.
I've been with UMCU for 35 years. I see something odd in this story. What I've had happen in the past is that, occasionally, I get a notification to call a certain number regarding "recent purchases." I respond: in my case, affirming the purchases as mine each time. So this story does not mention that process for checking "suspicious" purchases. Anyway - I trust UMCU based on long experience. But I also review my accounts online every week. The only time I found an error, it was when a tax refund didn't appear in my account. That was quickly explained and corrected.
Patti Smith
Fri, Jun 10, 2011 : 12:38 a.m.
Nothing like trying to use your Visa at CVS and having it rejected...and then getting an email from Netflix about how your account can't be accessed! To UMCU's credit though, we got a letter about it in the mail today...too bad I tried to use the card this morning and freaked myself out!
LBH
Thu, Jun 9, 2011 : 8:16 p.m.
What I have heard, several times, about this is that it is cheaper for banks to eat the loss than it is to change the cards and the card readers. There are systems which use cards with chips in them that have rotating/changing codes which can come pretty close to eliminating this problem. Not sure how many cases are pursued and prosecuted, but it sounds like somebody will be in this case. It will probably take a while before more information can be published though.
ChelseaGirl
Thu, Jun 9, 2011 : 7:31 p.m.
@ MJC-Our Visa card fruad department told us that nothing would make a difference. Whom ever hacked our card was able to do so by just plugging in radom card numbers and they hit on ours. Basically it is just another computer software some hackers created to do just this.
Bob
Thu, Jun 9, 2011 : 6:29 p.m.
We have withdrawn our funds from one area bank (not locally owned) that has the same problem but is just referring customers to the police to file a report. They did investigate and we got our money back, but no warning has gone out to the customers and nothing, apparently, is being done. It's time someone does an investigative story on how this happens and what can be done to prevent it.
MjC
Thu, Jun 9, 2011 : 5:25 p.m.
Is there anything we can do to better secure our cards and accounts beside changing passwords, reviewing account transactions, and shredding statements?
ChelseaGirl
Thu, Jun 9, 2011 : 4:32 p.m.
I am so tired of this happening to so many people. My husband I were just notified Sunday that our Visa (not through the U of M) has been compromised to the tune of $47,000.00 for commerical food purchase. Although we are not held responsible for the damages, it just makes me sick.
Steve
Thu, Jun 9, 2011 : 4:21 p.m.
Is there no way to find out what company was doing this? If there is a company in town that has employee's using customers credit card information to make purchases I would certainly like to know that. If I've been there using a card other than UM credit union card I want to do a double check on the transactions. Why would Visa or the Credit Union want this information kept quiet? The more we know, the better we can protect ourselves.