Community banks in New England have acknowledged at least 200,000 credit and debit cards compromised by the TJX Cos. security breach, and several Massachusetts banks reported cases of fraud related with card numbers stolen from the Framingham merchant's computer system.
The number of compromised accounts is expected to rise as more banks react to state surveys, which have not included main financial institutions such as Bank of America, according to Steve Kenneally of America's Community Bankers, a Washington, D.C., trade group.
Banks continued to receive new set of compromised card numbers yesterday, and community banks in New England are estimating that between 15 and 30 percent of their cardholder accounts were affected by the security breach.
Sherry Lang , a TJX spokeswoman, refused to comment on the association's report on illegal use of credit and debit cards. The company has received a limited number of cases of potential fraud that need to be followed up, Lang said, and TJX is taking into consideration offering free credit monitoring to customers whose cards have been exposed.
Middlesex Savings Bank is reissuing at least 20,000 Visa debit cards and had about a dozen suspected cases of fraudulent activity as far away as California and Japan, bank officials said. The bank stated it costs at least $5 to replace a card, and many of the fraudulent charges were happening at gas stations, discounters, grocery stores, and Internet merchants.
Wainwright Bank said at least 2,700 cards were reported compromised, but it had no cases of fraud, according to Steven F. Young , a bank senior vice president.
Marcie B. Abainou of Revere said Citibank informed her about illegal activity, including multiple $100 charges at gas stations in Florida, that she suspects is connected to the TJX security breach.
Banks continued to express frustration with TJX yesterday, increasing concerns about the rising costs of the security breach and a scarcity of cards to reissue to customers. Some have already begun discussing taking action against the retailer.
"We are actively exploring options to hold TJX liable for any fraud losses that may result from their breach, and hopefully for the cost to our members of repairing the damage they have done," said Jerry Little , president of the New Hampshire Bankers Association.
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