Most DMVs offer various transactions online, to be more efficient, reduce long lines and wait times, and make it easier for customers to renew their license plate stickers, their driver’s licenses, and ID cards. But, like with any online payment, there are some risks involved in paying for DMV-related services over the Internet. There is risk of identity theft, unspecified charges, and other types of credit card fraud. That’s exactly what the California DMV might be facing, with reports of a credit card breach that might have occurred over the course of five months, from August 2013, to January 2013.
MasterCard Data Breach
Following an alert sent by MasterCard to various banks, law enforcement officials contacted the California DMV, to notify them that some of their customers’ credit cards, which have been used to pay for certain DMV services, may have been compromised. MasterCard has noticed fraudulent charges on cards that were used in online DMV transactions from August 2, 2013, to January 31, 2014. So far, there has been no information on what exact data has been compromised, but according to some speculations, it’s highly likely that credit card expiration dates, numbers and verification codes have been compromised. If this is true, it means that those who stole this information can use it to make forged cards. It’s unknown how many customers were affected by this potential breach, but there have been some reports saying MasterCard has sent a list of over 1,000 credit cards that might be at risk. According to official information from the DMV, nearly 12 million online transactions were completed in 2012, which is 6% more than 2011.
DMV Breach Investigation
The California DMV has started an investigation into the potential credit card breach immediately after it was informed by law enforcement officials. The California DMV has contacted various banks and credit unions, as well as the company that processes the transactions that are completed on the DMV website. Some of the most common online transactions include driver’s license renewal and vehicle registrations.
In its statement, the DMV said: “In its investigation, the department is performing a forensic review of its systems and seeking information regarding any potential breach from both the external vendor that processes the DMV’s credit card transactions and the credit card companies themselves.”
These reports of a possible credit card breach are only adding to consumer concerns over the security of credit card systems, which had already been raised a couple of months ago, when millions of Target customers were affected by a similar breach. That was the biggest crime involving a breach of credit cards in history.
Be that as it may, this case will certainly prompt the financial services industry to try and enhance online payment security, and will shine light on cyber crime and credit card breaches, which have become quite common in the past few years.
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