Canadian Retailer Faces Security Breach of Customer Credit Numbers

After setting a warning, a fashion retailing Canadian company, Club Monaco has initiated an investigation into a probable security violation towards January end this year in relation to some credit card numbers of its shoppers. This is now the third company circulating the warning, which has led Canadian customers to think twice before producing their credit and debit cards to pay for festive celebrations.

A spokesperson for Club Monaco Corporation (RCMP) said on January 25, 2007 that the Royal Canadian Mounted Police was conducting an investigation involving theft of credit card information of customers from the company's 27 stores in Canada. The company has chains in 39 locations in the U.S.

On January 26, 2007, the RCMP was unable to ascertain whether the company had reported to them or an investigation was already in progress.

According to the company spokesperson, however, they have not yet determined how many customers fell into the trap. Investigators have still not found any proof confirming the breach. A spokesperson for the clothing retailer said, the information that the investigators were examining didn't include shoppers' names, addresses and phone numbers.

Club Monaco says it received the alert to the problem from a credit card processor in one of its outlets. The company immediately engaged a forensic firm to assist the Mounties with the examination.

As per reports, notices about the problem have been sent to banks and other financial institutions issuing credit cards that are also searching client records for any evidence of fraud.

Bernice Karn, a partner at the Cassels Brock law firm said in a statement to the Canadian Press that she fails to understand how so many warnings about these thefts have been emerging in such short intervals. She assumes it to be merely a coincidence. Alternatively, companies might have just become too sensitive about the issue.

While consumers need to continue to closely monitor credit card bills, read bank statements and credit reports carefully, there is also need to improve current privacy legislation. All this and adoption of enhanced security measures by companies to protect against such thefts is also necessary.

Related article: Canadians Receiving Fake Tax Refund E-mails

» SPAMfighter News - 2/2/2007