Banks Look To Head Off Target Security Breach With Cash and Purchase Limit On Customer Debit Cards
JP Morgan Chase & Co. said Target shoppers who had purchased items with their debit cards during the company’s security breach between Nov. 27 and Dec. 15 are being limited in how much they can attain in cash and the amount they can purchase with them. Customers, at this time, can only get up to $100 in cash withdrawals and make purchases of no more than $300 per day.
According to the bank spokeswoman, the preemptive move will affect about two million accounts (or less than 10 percent of the Chase debit card accounts). Credit cards are not affected by it.
Customers were notified by email about the company’s move in limiting the amounts they can use on the card with a subject line of “Unfortunately, your debit card is at risk by the breach at Target stores.”
According to the bank, the move was just a preemptive measure and understands it’s at the worst time possible.
Citibank is also moving to limit how much spending can be done on the affected customers’ debit cards. How much they would limit was not yet clear at this time.
Target announced the security breach on Thursday, stating computer hackers had gotten ahold of about 40 million shoppers’ debit and credit card accounts; people who had visited the store during the holiday season’s first three weeks.
The bank stipulated new debit cards would be reissued in the next few weeks and employees would possibly stay later at the 5,600 branches if necessary.
The difference between debit cards and credit cards is that customers need to enter their personal identification numbers when buying products at the check-out counters. The initial reports from Target said the data could have been obtained through the checkout counter devices.
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