Defeat of the Durbin Amendment dominated banking news headlines, but that’s not all that happened this week. Continue reading to find out more about Citi Credit Card’s recent hacking troubles and other news featured this week on MyBankTracker.com.
Durbin Amendment Opponents Face Defeat:
After more than two years of debate those in favor of interchange fee caps have finally realized victory. A bill proposed by Senator Jon Tester (D-MT) that would have delayed enactment of the interchange fee banks are able to charge merchants was voted down in a 54-45 vote this past Wednesday. Had the bill, called the Debit Interchange Fee Study Act of 2011, been approved by the Congressional body then interchange fee cap rules proposed in the 2009 Dodd-Frank Act would have been delayed for 15 months and a study of the effects of the rule would also have been commissioned. With its failure to pass through the U.S. Senate, Durbin’s interchange fee cap rule will now go into effect on July 21.
Hackers Target Citi Credit Cards:
Citi became one of dozens of other businesses affected by hackers this week, announcing on Thursday that the credit card information of at least 200,000 of its customers had been compromised. According to a spokesperson for the bank, names, emails, account numbers and contact info was accessed by the hackers, while more sensitive data such as social security numbers and card security codes was not obtained. If you’re a Citi Credit Card Customer then you’d be wise to check your credit ard statement for fraudulent purchases. Debit card holders were unaffected by the hack.
Debit Card Victims To See Their Day In Court:
Not all news about cyberthiefs, hackers and the like was bad this week. The federal government stepped up its prosecution game by indicting four men for allegedly stealing over $1.5 million from unsuspecting debit card users through a practice known as skimming. The banks affected by the scam included JP Morgan, Citibank and Chase branches in cities that included Chicago, New York and Miami. What’s irked those following this case is that the suspects apparently entered bank branches and tampered with debit card readers in plain sight by replacing PIN pads with identical pads that remotely recorded PIN activity.