CardSystems Solutions could face a $500,000 fine from Visa for possible security lapses after hackers gained access to over 40 million credit card accounts through the processing company’s computer network, officials said Monday.
CardSystems, which processes credit card transactions for biggies like Visa and MasterCard, is hardly a wayward company. In fact, Visa said Monday that it had approved the firm’s security procedures less than a year before the incident was first discovered in May.
But CardSystems fell out of compliance the moment it started collecting customer data from transactions. Typically, card processors are expected to trash the information as soon as possible after customer transactions. The company, however, held on to customer data for an undisclosed period of time, in violation of procedures. This violation could end up sticking the company with the heavy fine.
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