Saturday, December 21, 2013

JP Morgan Chase limits debit card use for customers at risk in Target breach ! 2 Million Chase customers could be impacted by 100 buck limit in daily cash withdrawals and 300 buck total purchases daily limit ( does this remind you of Cyprus ? ) Time limit fo restriction ( not immediately given ??? ) ..... some help at Chase branches available but how many folks will find out about these restrictions while shopping ? And how many banks will follow Chas with these de facto capital controls , which look like they will last until debit cards are canceled and replaced for Chase customers ? !

WTF ? Capital controls imposed by Chase  on customers who used debit cards at Target between Thanksgiving and mid - December ?

Chase limits debit card use for customers at risk in Target breach

JPMorgan Chase, the largest bank in the United States, told customers Saturday that they would be limited to $100 in cash withdrawals and $300 in total purchases per day if they used Chase debit cards at Target during a recent security breach.
The limit applies to about 2 million customer accounts, Kristin Lemkau, a Chase spokeswoman, told NBC News. That represents less than 10 percent of Chase customers, she said. The limit does not apply to Chase credit cards.
Target announced earlier this week that as many as 40 million debit and credit cards were compromised during the breach, which the store said began just before Thanksgiving and ended Dec. 15.
The security breach exposed customer names, card numbers, expiration dates and the short security codes known as CVVs. The industry blogKrebs on Security, which first reported the breach, has reported that card accounts are already being sold on the black market.
Target, eager to repair the public-relations damage and restore customer trust, has apologized and offered a 10 percent discount at its stores this week.
Chase did not immediately give a time limit for the restrictions. The normal daily limit for transactions on Chase debit cards is $500, and the normal daily limit for cash withdrawals is generally $200 to $500, Lemkau said.
The bank said on its website that its employees would be ready to help customers who need more cash than $100. Customers can visit Chase branches, many of which will issue temporary cards, Lemkau said.
“We realize this could not have happened at a more inconvenient time with the holiday season upon us,” the bank said. “It’s unfortunate that criminals are active during a time of giving and generosity.”
Chase is issuing new debit cards in the coming weeks to all customers whose cards were put at risk, Lemkau said.

Chase limits customer spending after credit-card security breach at Target

December 21, 2013 6:00PM ET
Bank says holders will only be allowed to withdraw $100, make purchases of up to $300 per day until security restored
JPMorgan Chase & Co
Target store
Target announced on Thursday that it was the victim of the second-largest credit-card security breach in U.S. history.
Joe Raedle/Getty Images
JPMorgan Chase & Co. on Saturday notified customers who used its debit cards at Target stores during the retailer's recent security breach that it was limiting the use of its cards to $100 of cash withdrawals from ATMs per day and purchases totaling $300 a day.
The new limit affects roughly 2 million accounts, or about 10 percent of Chase debit-card holders, according to a bank spokeswoman. It does not apply to credit cards.
The bank detailed the limits in an email sent to customers with the subject line: "Unfortunately, your debit card is at risk by the breach at Target stores."
The bank said it was taking the action as a precaution and recognized that the move "could not have happened at a more inconvenient time."
Target, The U.S.' second-largest retailer, which made $72 billion in sales in 2012, acknowledged Thursday that data connected to about 40 million credit- and debit-card accounts was stolen as part of a breach that began over the Thanksgiving weekend.
The Minneapolis-based retailer has offered customers a 10 percent discount on all purchases made in Target stores on Dec. 21 and Dec. 22., as well as free credit-monitoring services for those affected by the breach. In a statement, the company said that while "very few" customers had reported fraud, it was reaching out to everyone at risk. The company also said it is continuing its investigation into the matter.
"We take this crime seriously," Target CEO Gregg Steinhafel said in a separate statement published on the company's website.
The theft is the second-largest credit-card breach in U.S. history, exceeded only by a scam that began in 2005 involving retailer TJX Cos, which owns T.J. Maxx, Marshalls and HomeGoods. That incident affected at least 45.7 million card users.
Target spokeswoman Molly Snyder declined to comment on JPMorgan's action. She said she "couldn't speculate" on whether other banks issuing debit cards would take similar steps.
JPMorgan Chase said in its email that it plans to reissue affected debit cards over the coming weeks. In the meantime, the bank said employees at its 5,600 branches would assist customers in need of additional funds. Many branches will stay open late "if needed," the email said.
Debit cards, unlike credit cards, typically require customers to enter personal identification numbers when they make purchases at store check-out counters. Initial reports of Target's security breach said data may have been taken through devices at its counters.
Debit cards are used to spend money that has been deposited in checking and other demand accounts at banks. Cardholders are not liable for unauthorized transactions they report to Chase, the bank said.