Posts Tagged ‘transparency’

My CC was hacked – but where?

Thursday, September 4th, 2014

We recently got a call from the bank, asking to verify that a series of transactions were valid. As it turned out, nothing was amiss and no action (e.g., new CC) had to be taken.

But this kind of call gets you thinking: why did the bank call? Presumably because there was a bulk compromise of some or all transactions at some retailer that the bank deals with. Recent news releases (Target, Home Depot, etc.) make this seem likely.

As a consumer, I really want to know. Which vendor got hacked? At all locations or just one (physical or virtual) retail outlet? I want to know because, frankly, I might be more careful doing business with that retailer or outlet in the future.

The banks don’t release this information today. There is a hack, they know about it, but they don’t tell me who was hacked, or when, or where? This is presumably because they don’t want to anger (embarass?) their merchant customer. I get that, but I’m their customer too, and so are millions of other consumers. I think the banks should disclose what they know to the consumers, as this will reduce the total cost of the impact of the hack. It will also provide a much stronger incentive to merchants to lock things down, and over time may reduce the cost of attacks.

At the end of the day, the bank did nothing wrong, the merchant had an error of omission, not commission (inadequate protection) and the consumer did nothing wrong. Can’t we just all be open and transparent about the event, to help work together to keep out the bad guys?