JPMorgan to notify 500,000 due to data breach, but will not offer replacement cards

JPMorgan Chase & Co. has said they plan to issue breach notifications to nearly 500,000 customers, or two percent of the bank's 25 million UCard users, after hackers breached their network in July. However, because there's no evidence that funds were stolen, the bank will not issue replacement cards.

[Adobe confirms stolen passwords were encrypted, not hashed']

On Wednesday, several state agencies were notified of a data breach that took place in July, after hackers compromised UCard servers maintained by JP Morgan Chase & Co. The incident resulted in the potential loss of hundreds of thousands of records.

The breach itself was detected and fixed in September, but the specifics of the attack remain undisclosed. While normally encrypted, the bank said that the records compromised during the attack appeared in clear text temporarily while the breach taking place. Moreover, the bank stressed that the breach in July only affected the prepaid UCards, and none of the other cards brands that they support.

In statements to local media, the Louisiana Department of Revenue, Workforce Commission, and Department of Children and Family Services, confirmed that they've received breach notification letters. Combined, the agencies said that 13,500 people in the state had been affected.

The Chase UCards are issued by state agencies to process state payroll, child support payments, state assistance payments (EBT), education assistance payments, unemployment payments, and tax refunds. Aside from Louisiana, the exact number of records lost state-to-state isn't clear, but the UCard is issued in Utah, Texas, Connecticut, Illinois, Pennsylvania, Ohio, New York, Missouri, Kansas, and Oklahoma.

Chase has said that cardholders who registered their cards between July and September 2013 are the focus of the notifications, but they have no evidence that the information compromised has been used fraudulently.

In a statement to Reuters, Michael Fusco, a spokesman for JPMorgan Chase, said that the bank is still investigating in order to discover what accounts were involved, and what information could have been taken. However, because the possibility that personal information loss remains, the bank will notify 500,000 cardholders about the incident, or roughly two percent of the 25 million UCard users.

[Collisions likely over PCI 3.0]

As part of their breach recovery efforts, the bank is offering one-year of credit monitoring to anyone affected by the data breach. However, because there has been no evidence that funds were stolen, or that other crimes were committed, JPMorgan has stated that they will not issue replacement cards.

Join the CSO newsletter!

Error: Please check your email address.

Tags JPMorgan Chasesecurity

More about Adobe SystemsJP MorganMorganReuters Australia

Show Comments

Featured Whitepapers

Editor's Recommendations

Solution Centres

Stories by Steve Ragan

Latest Videos

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

  • 150x50

    IDG Live Webinar:The right collaboration strategy will help your business take flight

    Speakers - Mike Harris, Engineering Services Manager, Jetstar - Christopher Johnson, IT Director APAC, 20th Century Fox - Brent Maxwell, Director of Information Systems, THE ICONIC - IDG MC/Moderator Anthony Caruana

    Play Video

More videos

Blog Posts