Did you hear about the American Express data breach? American Express announced that its credit cards were exposed to a third-party data breach after a merchant processor was hacked.
The data breach did not affect American Express’s own systems but a third-party system that processes American Express card member information. Here are all the details…
American Express data breach: What information is at risk?
Here is the information affected by the attack:
- Credit card numbers: Attackers may have accessed customers’ credit card numbers. In short, there is a possibility that expiration dates and CVV codes of card numbers were stolen.
- Customer names: Attackers may have obtained customers’ full names to be used for identity theft.
- Card expiration dates: The attackers may have also captured the cards’ expiration dates.
In addition to the aforementioned information, the attackers may have accessed other personal information such as customers’ addresses, phone numbers or dates of birth.
How many people were affected by the American Express data breach?
It is not yet known how many customers were affected by the attack. American Express is working to identify all affected customers.
When did the attack take place?
The date of the attack also remains unclear at the moment. American Express has investigated the incident and is working to learn more.
Who is responsible?
American Express is not sharing any details about its business relationships and the third-party processor affected. The attackers’ identity and motives are unknown, but it is likely to have been carried out by cybercriminals.
What is American Express doing?
American Express has notified the necessary regulatory authorities. All affected customers are being alerted. These alerts are sent via email, letter, or phone. Customers are encouraged to review their account statements carefully and report any suspicious activity to American Express immediately.
On the other hand, the company is asking customers to regularly monitor their account statements over the next 12 to 24 months and report any suspicious behavior.
Technology sector concerns
People in the tech industry point out that this data breach raises a number of concerns. Here are some of these concerns:
- Customer trust: Breaches can expose customers to the theft of their credit card information and the risk of fraud. Frauds can undermine customer trust in banks and credit card companies.
- Financial losses: Data breaches can lead to significant financial losses for banks and credit card companies. Losses include financial losses from fraudulent transactions and expenses incurred to investigate and remediate the data breach.
- Legal liability: Data breaches can lead to legal liability for banks and credit card companies. This liability includes the obligation to compensate customers affected by the data breach.
- Cybersecurity risks: Data breaches are an indication of increased cybersecurity risks.
Technology sector measures
People in the technology sector are taking a number of measures to reduce the risk of data breaches. Some of these measures include:
- Data security investments: Banks and credit card companies invest in data security technologies and solutions. Investments are made in areas such as data encryption, data access control, and data loss prevention.
- Cyber security awareness training: Banks and credit card companies provide cyber security awareness training to their employees. Cybersecurity trainings help employees understand the types and risks of cyberattacks and take the necessary steps to protect against these attacks.
- Cybersecurity audits: Banks and credit card companies regularly audit their cybersecurity systems. These audits are conducted to identify and correct system vulnerabilities and weaknesses.
- Cooperation and information sharing: Banks and credit card companies cooperate and share information with each other to combat cyberattacks. Collaboration plays an important role in preventing cyberattacks and finding those responsible.
Final thoughts
The American Express data breach shows that the tech industry needs to pay more attention to data security and cybersecurity. Those in the tech sector should take a number of measures to reduce the risk of data breaches, such as increasing investments, providing cybersecurity awareness training, and conducting cybersecurity audits. These measures are necessary to maintain customers’ trust and prevent financial losses.
Featured image credit: CardMapr.nl / Unsplash
