BURTON, Mich. (3/28/12)--A Burton, Mich.-based credit union is one of the financial institutions that received an alert from a Visa processor indicating the debit or credit cards of 450 members had been compromised in a data breach at an unnamed retailer's processing network.
ELGA CU'sstaff immediately blocked the cards as a precaution and spent the weekend contacting members, explaining why the credit union was blocking the compromised cards and arranging for new cards to be reissued (mlive.com March 26).
As a result of the phone calls, the credit union identified thousands of dollars in fraudulent activity on members' cards. Frank Wilber, the executive vice president of the credit union, told mlive.com that once illegal activity was confirmed, the credit union would cover the members' loss.
The credit union estimated the breach has cost it between $14,000 and $15,000, Wilber told WNEM.com (March 27).
Most of the 450 members identified as "possibly compromised" by the Visa alert live in Genesee County. The credit union serves members in six counties.
Wilber told the newspaper that it is a difficult situation for a financial institution and its members. After it blocked all the compromised cards, the credit union got a call from a woman on her honeymoon in Las Vegas who needed to use her card. The credit union unblocked her card but monitored it all weekend until she returned home.