Nations Regions Bank, 100,000 credit cards, breach at unnamed(!) processor
Regions Bank is canceling the credit cards of 100,000 of its customers in 15 states — including Indiana — saying a separate company put their credit information at risk.
Regions said the security breach involves a company that processes credit and debit cards nationwide.
The bank, which says it was not responsible for the problem, will issue new credit cards to its customers soon, Call 6 for Help’s Rafael Sanchez reported Monday.
“Many times when this happens, there is no impact whatsoever, but we just decided to take the extra precaution,” said John Kinman, Regions Bank senior vice president.
Information on how the breach happened and the extent of the risk wasn’t known, Sanchez reported.
The credit-card processing company works for other banks, so it is possible that other banks will take the type of action that Regions is taking, Sanchez reported.
I am more convinced than ever that my prediction of a major suit against a processor will pan out. Regions Bank isn’t exactly Chase or BofA, size-wise, and they had 100K cards exposed.
Neat how the bank VP says the precaution is “extra”, while the News guy says the risk is unknown. Looks to me like the banker has already put an upper bound on it (at least until a Russian web site gets into the act).
Update 2/10/2006: Error in bank name corrected. My apologies. [cw]