Fraud Summit - Chicago 2014 - In early 2014, First American Bank took the bold step of calling out a payments processor and warning customers not to use payment cards in Chicago-area taxis until a suspected data breach was resolved. Register for this session, which was recorded at the 2014 Chicago Fraud Summit, to learn:
What led the bank to take this unusual step?
What actions resulted?
What do bank leaders offer other institutions re: breach response?
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It was a case that fraud analysts cited as rare.
In March, First American Bank was reported to have warned its customers against using their payments cards in Chicago-area taxis until a suspected data breach, which it says has led to fraudulent purchases, gets resolved.
In a notice to its customers, the bank called out Bank of America Merchant Services and Bank of America, the payment processors for the local taxi companies that use Taxi Affiliation Services and Dispatch Taxi to process card transactions, for not responding in a timely fashion to the alleged breach.
"We have ... made repeated attempts to deal directly with ... the payment processors for the taxis to discontinue payment processing for the companies suffering this compromise until its source is discovered and remediated," First American Bank said in a statement. "These companies have not shared information about their actions and appear to not have stopped the breach."
First American Bank reported the suspected breach to MasterCard and said it would continuously monitoring activity on its customers' cards.
What led the bank to take such bold action? Hear the answer first-hand from one of the bank's executive vice presidents. In this exclusive case study and Q&A session recorded at the 2014 Chicago Fraud Summit, First American's Ed Monteagudo discusses the case and explains the bank's actions.
Monteagudo is an executive vice president of First American Bank, responsible for multichannel delivery of banking services. He manages First American Bank's online, mobile banking, debit and credit card programs, ATM deployment, other self-service delivery systems and branch delivery systems. Monteagudo has a long career in banking. Prior to his 18-year tenure at First American Bank, Monteagudo was a banking executive at Household International and Continental Illinois National Bank. During his career, he has served in the formative advisory councils of regional and national debit networks.