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MAINE DEPARTMENT OF PROFESSIONAL
AND FINANCIAL REGULATION

35 SHS, Augusta, Maine 04333

 
Phone: (207) 624-8500
Fax: (207) 624-8690
TTY: (888) 577-6690

Data Breach Protections for Consumers Outlined

 

March 20, 2008

 

 

State financial regulators reassured consumers this week that state and federal laws are in place to protect them from major losses due to file breaches such as the one disclosed by Hannaford. On Thursday, they outlined the following steps that consumers and business operators should take when evaluating the potential impact of a data breach:

• Consumers should always thoroughly review credit and debit card statements from their bank or credit union.

• If a credit or debit card was used at a business that has experienced a data security breach, such as Hannaford, or there is uncertainty about whether a card was used, consumers should be especially diligent in evaluating charges or withdrawals on their statement.

• If consumers have online access to their credit or debit card information, they should review account activity as soon as possible, rather than waiting for the statement to arrive in the mail.

• If unknown charges or other suspicious activity appear on the account, consumers should notify the financial institution that issued the credit or debit card.

• Consumers do NOT need to contact the company that experienced the data breach, such as Hannaford.

• Consumers noticing questionable activity on their CREDIT CARD have 60 days from when the bank or credit union sent the statement to report it, but are encouraged to act immediately. If the reporting of suspicious CREDIT CARD activity occurs within those 60 days, consumers are protected from losses. Although banks and credit unions may withhold up to $50 per instance of loss, most will restore the entire amount.

• Consumers noticing unauthorized activity on their DEBIT CARD resulting from a data breach have sixty (60) days from when the bank or credit union sent the statement to report it. If consumers fail to notify the bank or credit union of unauthorized transactions within this time, they are liable for the amount of the unauthorized transactions. This 60 day timeframe applies ONLY when the card’s data has been compromised through a data breach, as in the Hannaford case. See below for details about when a DEBIT CARD has been lost or stolen.

• When a DEBIT CARD has been lost or stolen, consumers have two (2) business days after learning of the loss or theft to notify their financial institution in order to limit their liability to $50. If they do not notify their bank or credit union about the lost or stolen DEBIT CARD within two (2) business days, consumers may be liable for up to $500 of the unauthorized transactions. If consumers do not notify their financial institution within sixty (60) days after being provided a monthly statement that lists a fraudulent debit, they can be liable for unauthorized withdrawals of any amount that occur after that 60 day period.

• To be safe, DEBIT CARD holders should act immediately if they notice unauthorized withdrawals.

• If impacted by unauthorized charges or withdrawals, consumers should first call the bank or credit union that issued the credit or debit card, and then follow up in writing to explain the problem.

• Since the Hannaford data breach reportedly began in December, consumers should review statements from December to the present.

• Some banks and credit unions may issue new cards to customers whose credit or debit card numbers are known to have been compromised through a data breach.

• Consumer may ask a financial institution to re-issue a new card if they have concerns about their account.

• Again, consumers do NOT need to contact the business that was the target of the data breach; and they need to contact the bank or credit union that issued their credit or debit card ONLY if they notice suspicious activity on their statement.

• For more information, contact the Bureau of Financial Institutions toll-free at 1-800-965-5235, or the Bureau of Consumer Credit Protection is 1-800-332-8529.

Last Updated: March 21, 2008 2:34 PM