Sean C. Morgan
Sweet Home Police Department investigators have concluded that “compromised” data transmissions from Economy Drug store are the cause of numerous reports of fraudulent uses of debit cards and credit cards in the Sweet Home area.
That announcement was made Wednesday after police determined earlier in the week that “the crime occurred after the card data was transmitted from the merchant to the processing center,” according to a post on the Police Department’s Facebook page.
“Bank personnel are now working directly with the merchant to close the vulnerability. Throughout the investigation the management of Economy Drugs worked closely with law enforcement to identify the source of the loss,” the department reported.
SHPD opened an investigation after receiving numerous reports that led investigators to believe that debit and credit card information was likely compromised inside the city limits, Police Chief Bob Burford said.
Investigators determined that “the security compromises
occurred during data transmission, exploiting a vulnerability within a local individual merchant’s security protocols,” he said. “Steps have been taken to seal that breach.”
Many of the fraudulent charges – at least 23 were reported by city residents last week – have been in Florida, but they’ve also appeared in Canada, Illinois, Texas, Great Britain and elsewhere, Burford said. “However this information is gathered, it’s being disseminated to a well-organized criminal enterprise.”
“So far none of the victims are out any money,” Burford said. The banks and credit card companies have covered the losses.
The Sweet Home police originally took the lead in the investigation
because of the possibility that a suspect working within the affected business was involved in identity theft. Since it has now been determined that the breach occurred elsewhere, the investigation has been turned back to bank security personnel.
“We are suggesting that local residents with online access to their debit card activity, check to verify that no unauthorized out of state charges have taken place. If you believe your card has been compromised,immediately contact your card carrier and advise them of the problem,then follow their directions.
Burford said in most cases, banks or credit card companies have noticed suspicious account activity and contacted cardholders.
“We are suggesting that those with online access to their credit and debit card activity check to verify that no unauthorized out-of-state charges have taken place,” he said. “If you believe your card has been compromised, immediately contact your card carrier and advise them of the problem then follow their directions.”
Burford suggested local residents follow the following precautions:
— Do not hand your credit or debit card to any other individual where it will be taken out of your immediate sight for processing. If at all possible, swipe the card through the reader yourself and protect your PIN from view when entering it.
–If you observe any suspicious activity taking place during a debit or credit card transaction, contact the police immediately. SHPD may be reached at (541) 367-5181.