Sixty Mass Banks Impacted by TJX Security Breach

The Massachusetts Bankers Association reports that several banks across the State have reported incidents of fraud due to the recently disclosed data breach by the TJX Companies. Thus far, nearly 60 banks have reported into the MBA that they have been contacted by the card companies about compromised cards and these banks are notifying customers and in many cases reissuing new cards. The fraudulent use of debit and credit card data has thus far been used to make purchases in Florida, Georgia, and Louisiana in the U.S., and Hong Kong and Sweden overseas. Last week TJX Companies publicly disclosed a security breach that may affect more than 40 million signature-based general purpose credit and debit cardholders worldwide. The latest hack took place between mid-May and December of last year and TJX acknowledged a similar hack in 2003 that may have accessed credit and debit card sales transactions in TJX’s stores in the U.S., Canada, and Puerto Rico. The latest intrusion involves the portion of TJX’s computer network that handles credit card, debit card, check, and merchandise return transactions for customers of its 826 T.J. Maxx, 751 Marshalls, 271 HomeGoods and 162 A.J. Wright stores in the U.S. and Puerto Rico, and its 184 Winners and 68 HomeSense stores in Canada, and may involve customers of its 212 T.K. Maxx stores in the U.K. and Ireland. The intrusion could also extend to TJX’s 36 Bob’s Stores in the U.S. (CF Library 1/19/07)

Details

Obopay Appoints CTO for India Market

Obopay has announced the appointment of a new chief information and
technology officer, Aditya Menon. Menon was previously CIO at Yes Bank.
Obopay is the first complete mobile
payment service in the U.S. that instantly lets consumers get, send and
spend money directly from their mobile phones to anyone, anywhere and
anytime.In an effort to provide global consumers the convenience of
mobile payments, Obopay has embarked on the Indian market, the
fastest-growing mobile market with more than 120 million subscribers.
India’s market is growing at a rate of six million new subscribers every
month and mobile phone users outnumber credit/debit card holders by as
much as 2.5 to 1.

Details

Senate Opens Credit Card Hearings Today

The U.S. Senate Committee on Banking, Housing, and Urban Affairs will open a hearing this morning to explore the business practices of the U.S. credit card industry. The hearing titled “Examining the Billing, Marketing, and Disclosure Practices of the Credit Card Industry, and Their Impact on Consumers.” will begin at 9:30 AM. Among witnesses to testify today: Professor Elizabeth Warren of the Harvard Law School; Robert Manning, author of Credit Card Nation; Michael Donovan, an attorney with Donovan and Searles; John Finneran of CapitalOne; Richard Vague, CEO of Barclaycard U.S.; Carter Franke, EVP of JP Morgan Chase; Tamara Draut of Demos; and Travis Plunkett of the Consumer Federation of America.

Details

First Data Revenue Up 14%; Net Down 34%

First Data reported that fourth quarter revenue grew 14% to $1.9 billion. While operating profit was up 67% year-on-year, net income fell 34% from the year-ago quarter to $278.5 million due to costs related to debt repayment, restructuring and impairment. For the fourth quarter, Commercial Services generated revenue of $1.1 billion, up 10% over 4Q/05, driven by transaction growth of 13%. Commercial Services’ operating profit was up 17% year-on-year to $306 million. Financial Institution Services produced revenue of $484 million, up 10%. Financial Institution Services’ operating profit was $96 million, up 12%. First Data International generated revenue of $377 million, up 43%, driven by organic transaction growth. First Data International’s operating profit was $59 million, up 52% over 4Q/05. During the fourth quarter First Data signed an agreement with Hong Kong-based Standard Chartered to jointly establish a new merchant acquiring company for Asian merchants, inked a renewal of a major processing agreement with Lloyds TSB in the United Kingdom and renewed its agreement with Advanta for small business credit card processing services. First Data projects earnings per share in the range of $1.20 to $1.26 for full year 2007. This is the second quarter First Data has reported since its spin-off of Western Union. For complete details on First Data’s fourth quarter performance visit CardData ([www.carddata.com][1]). (CF Library 12/15/06; 12/20/06)

FDC REVENUE HISTORICAL
4Q/05: $1684.4 million
1Q/06: $1635.7 million
2Q/06: $1731.1 million
3Q/06: $1787.2 million
4Q/06: $1922.4 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Details

Oberthur Smart Payment Cards Soar 44% in Q4

Paris and Los Angeles-based Oberthur Card Systems reported that its payment smart card volume rose more than +44% to 23 million units in the fourth quarter, compared to one-year ago. Overall, fourth quarter revenues increased 15% to $201.6 million. During the quarter Oberthur delivered over 89 million microprocessor cards, compared to 58.2 million units one-year earlier. Revenue in this segment rose 21.9% year-on-year. In the payment market Oberthur revenue increased by 30.5% compared to last year. The Company noted it faced a temporary slow down in the contactless segment in the U.S. during the quarter. Sales in the “Other Cards” segment (magnetic stripe cards, scratch cards and memory cards) hit $25.5 million, a 5.6% increase on a year-on-year basis. During the fourth quarter Oberthur named Philippe Geyres as CEO effective January 2nd and Bank of America chose Oberthur to provide contactless payment fobs as part of a trial to test radio frequency contactless payment companion devices. For complete details on Oberthur’s fourth quarter performance, visit CardData ([www.carddata.com][1]) (CF Library 12/19/06; 12/20/06)

REVENUES
4Q/05: $178.3 million
1Q/06: $158.5 million
2Q/06: $159.8 million
3Q/06: $161.5 million
4Q/06: $201.6 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Details

i2c Hires a Director of Infrastructure

CA-based i2c has hired Scott Conway as Director, Infrastructure. Previously he held positions within Sun Microsystems Inc. and Merrill Lynch in various disciplines including customer care, engineering, system administration, business and technical analytics, x-organizational program/project management, standards. He is a member of the Project Management Institute (PMI), PMI Mile-Hi Chapter and the PMI Information Systems Specific Interest Group (ISSIG). i2C is headquartered in Redwood Shores with over 250 employees and five Sales and Support offices worldwide. i2c is a leading, global technology provider of electronic payment processing solutions.

Details