from:
http://cbs.marketwatch.com/news/current/fdc.htx?source=htx/http2_mw
Click Here: <A
HREF="http://cbs.marketwatch.com/news/current/fdc.htx?source=htx/http2_mw">CBS
.MarketWatch.com - Western Union Web site ha�</A>
-----
Hackers hit Western Union Web site
By The Associated Press
Last Update: 7:28 PM ET Sep 10, 2000    NewsWatch
Latest headlinesDENVER (AP) -- Western Union on Sunday said hackers made
electronic copies of the credit and debit card information of 15,700
consumers who transferred money on the company's Web site, which was left
unprotected while undergoing maintenance.
T
Updated:
9/11/2000 10:20:32 AM ETThe company began notifying affected customers via
telephone and e-mail over the weekend and by late Sunday had informed Visa
and MasterCard about which of its cardholders had been affected.
Western Union spokesman Peter Ziverts said, so far, no cases of credit card
fraud have been reported to the Englewood, Colo.-based company. Visa
International and MasterCard International Inc. have begun monitoring
customers' accounts for possible fraudulence, Ziverts said.
Western Union, a unit of Atlanta-based First Data Corp. (FDC: news, msgs),
first learned the Web site had been hacked on Friday. The Internet-based
money-transfer service began in June, though the company was planning an
official launch of the Web site sometime this month. Ziverts said the launch
would likely be delayed.
Marc Rotenberg, executive director of the Washington-based Electronic Privacy
Information Center, said the Western Union security breach reflects the risks
to consumers as companies rush to do business on the Internet.
"In the end, what matters to consumers is that the companies to which they
entrust their credit card numbers and personal information will be able to
safeguard that data," Rotenberg said.
Last week, American Express announced it will offer disposable credit card
numbers for safer online shopping, part of a bid to address privacy and
security issues analysts say have slowed the growth of e-commerce.
Online money transfer accounts for an "absolutely minuscule" portion of the
company's total transactions, Ziverts said. He would not say how much online
business the company has lost due to the problem.
The Web site that was hacked - westernunion.com -- also allows customers to
apply for a loan, send messages and locate the nearest Western Union store.
Customers using these services were not affected.
Western Union offers similar services on a separate Web site - moneyzap.com
-- and customers using that site were not affected.
Ziverts said the problem was caused by human error and not an inherent
technical flaw -- systems employees conducting regular maintenance left parts
of it unprotected, allowing hackers to break in, he said. He said it was not
an inside job.
The company has not taken any disciplinary action.
The company and law enforcement were investigating the breach, but Ziverts
declined to provide further details about the probe or say what agencies were
involved. The FBI office in Denver would not say whether it was participating.
Western Union carried out 73 million money transfer transactions worldwide
last year. Most of them are done through agents in stores and other
locations, others by phone. Only customers who used the Web site were
affected, the company said.
Ziverts said the Western Union customers who use the Web site to transfer
money tend to be wealthier than those who use the traditional method --
middle-income and above, he said, as opposed to middle-income and below for
customers using the agents.
The company has set up a toll-free number for complaints: 1-800-228-6530.
Shares of FDC dropped $2.69 to close Friday at $41.

------------------------------------------------------------------------
Copyright 2000, The Associated Press. All rights reserved.

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