| Canadian shoppers undeterred by credit card breach |
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| Written by Peter James | |
| Saturday, 03 February 2007 | |
Full page ads by Winners and HomeSense in Canadian daily newspapers over the weekend reassured consumers that bank debit cards in Canada were not compromised by security breaches to the company's US-based transaction servers. President Michael McMillan stated: "There has been an important development since our January 17 announcement. Based on our investigation, we now believe that transactions using debit cards issued by Canadian banks were not involved in the systems breach."Bargain-hunters not worried about identity theftMacMillan's assurance seemed hardly necessary as Canadians continued bargain-hunting at the two national retail chain outlets across Canada, undeterred by the news of possible ID theft.
"The prices (are) unbelievable," she said. "You see really nice stuff that you'd normally see for like one-hundred-and-something and it's excellent." Annie Warthell, who uses her credit card on a regular basis when buying clothing or household decorations at the Winners' chain, wasn't bothered by the breach. "I've always been in the habit of checking my statements," Warthell said, pushing an overflowing cart at the downtown Winners store. "As long as I do that, why should I have to deprive myself of shopping at a place I love?" With customer loyalty like that, who needs computer security? Fortunately many Canadian officials are not taking as lax an attitude towards the situation, which came to light several weeks ago after the TJX, the American parent company for Winners and Home Sense Canada, announced they had uncovered a massive security breach in their transaction servers. Millions of customers in the United States, Canada and Great Britain had sensitive credit card and financial information stolen by hackers during a six-month attack that ran undetected from May to mid-December of 2006. Canada's privacy commissioner, Jennifer Stoddart, and Alberta's information and privacy commissioner, Frank Work, are investigating how TJX's database was breached and how it affects Canadians who shopped at their stores.
"I am profoundly concerned about incidents of this nature that put at risk individuals' personal information," Stoddart said in a release this week.
Stoddart wants financial institutions and corporations to be required by law to notify their customers when a security breach takes place. She is proposing changes to Canadian federal privacy laws. Work said he is concerned about the type of information and the length of time it is held. "Some of the information that was breached dates back to 2003, and I would like to know what kind of information is collected," Work said. Another Canadian retailer, Club Monaco, has also revealed that it was investigating a possible security breach involving the credit-card numbers of its customers. The company has not yet been able to identify the full extent of the unauthorized intrusion. What's the big fuss about Identity theft in Canada?Brand loyalty is certainly admirable, but all Canadian consumers need to take ID fraud seriously. Losing your financial reputation can be one of the most devastating crimes committed against you. It can take years to rebuild your credit rating and trust again with banks and other financial institutions. Anyone who shopped at Winners, HomeSense or Club Monaco since 2003 should carefully investigate all current and past credit card and bank statements for any unusual activities. If you can't verify a transaction, immediately contact the VISA, MasterCard, American Express or Discover credit card company to review the bills.
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