Scammers discovering ways to combat credit card chip technology

GOOD EVENING THE STATE'S CONSUMER PROTECTION OFFICE CALLS THE ZIPPYS SECURITY BREACH A "BIG" AND "TROUBLING" ONE FOR HAWAII ON FRIDAY, ZIPPYS ADMITTED ALL OF ITS RESTAURANTS WERE AFFEECTED BY A DATA BREACH SPECIFICALLY THE CREDIT AND DEBIT CARD PROCESSING SYSTEM THAT IT USES AND WHILE MANY COSTUMERS HAVE QUESTIONS SO DO STATE OFFICIALS BRIGETTE NAMATA FOLLOWS UP BRIGETTE? BRIGETTE: I TRIED TO GET SOMEONE FROM ZIPPYS TO TALK TO ME ABOUT THE SECURITY BREACH THEY WOULDN'T GO ON CAMERA TODAY

BUT PROVIDED SOME ANSWERS OVER THE PHONE THE DEPARTMENT OF COMMERCE AND CONSUMERS AFFAIRS GAVE A BIT MORE INFORMATION INTO THE BREACH, AS WELL ZIPPYS FIRST LEARNED OF THE BREACH ON MARCH 9TH

BUT DID NOT TELL THE PUBLIC UNTIL A MONTH AND A HALF LATER SAYING IT WAS "INVESTIGATING" THE BREACH THE INFORMATION THAT MAY HAVE BEEN COMPROMISED INCLUDES THE CARDHOLDER'S NAME, THE CARD NUMBER, EXPIRATION DATE, AND THE 3 DIGIT SECURITY CODE ON THE BACK OF EACH CARD SOMETHING THE D-C-C-A SAYS IS TROUBLING, BECAUSE THAT MEANS THE THIEF HAS COMPLETE ACCESS TO YOUR CREDIT OR DEBIT CARD INFORMATION

I ASKED ZIPPYS AGAIN TODAY "HOW MANY" COSTUMERS WERE IMPACTED, BUT I WAS TOLD THEY DID NOT KNOW D-C-C-A DIRECTOR STEPHEN LEVINS SAYS THEY'RE INVESTIGATING TO FIND OUT HOW AND WHY IT HAPPENED BUT IN THE MEAN TIME, IT'S A GOOD IDEA FOR EVERYONE WHO HAS EATEN AT ZIPPYS IN THE LAST 6 MONTHS TO GET YOUR CREDIT AND DEBIT CARD INFORMATION CHANGED

STEPHEN LEVINS: "The problem with this, is that you don't know if the card is going to be used inappropriately You don't know if it's going to be used tomorrow, a month from now, or a year from now It's very concerning" BRIGETTE: LEVINS URGES CONSUMERS TO CONSTANTLY CHECK YOUR BANK STATEMENTS FOR SIGNS OF FRAUDULENT ACTIVITY BRIGETTE: D-C-C-A SAYS, IF A THIEF CHARGED SOMETHING TO YOUR CREDIT CARD, FEDERAL LAW ALLOWS YOU TO GET THE CHARGE FIXED

SAME GOES FOR DEBIT CARDS – BUT IT WILL BE A LITTLE MORE DIFFICULT BECAUSE IT'S ESSENTIALLY LIKE "CASH" WE'LL CONTINUE TO FOLLOW UP BACK TO YOU MARISA: THE ZIPPY'S DATA BREACH WE TOLD YOU ABOUT LAST WEEK HIGHLIGHTS THE RISKS OF USING YOUR CREDIT OR DEBIT CARD AND THAT'S DEPITE ALL OF THE SECURITY IMPROVEMENTS TO PROTECT YOU FROM FRAUD

IN TONIGHT'S ACTION LINE CONSUMER ALERT, SEAN IBARA FINDS OUT HOW SCAMMERS ARE KEEPING UP WITH THE TECHNOLOGY The Hawaii Better Business Bureau says scammers have discovered ways of combating credit card chip technology In at least one case, the cards are being intercepted in the mail That's when the chips are pulled off and replaced with fake ones Then the card is sent on its way to the cardholder JASON KAMA/HAWAII BETTER BUSINESS BUREAU MARKETPLACE MANAGER: It's as if they copied the information of your credit card like the credit card number, expiration date, and security number, all those things that you protect from scammers When the cardholder activates the card a day or two later, that opens the door for the scammer to go on a shopping spree

It's not until the cardholder tries to use the card with the fake chip on it that he or she finds out it doesn't work In Arizona, scammers managed to insert a small device, similar to a USB, inside a store's chip reader In this case they're inserting something that leaves behind something that reads the chip card information And then later they'll come back and insert that card again to download that information off of that item that they inserted But it's not clear how they're able to use the information since the data is different for every transaction and can't be duplicated So far there have been no reports of either scam in Hawaii SEAN IBARA/DOWNTOWN HONOLULU: Kama says even though with all the advancements in chips on your credit cards, there are still lots of scammers lurking around unbeknownst to you That's why paying close attention to your credit card statement is so important

If you have a concern or are interested in becoming an Action Line volunteer for just a few hours a week, give us a call at 591-0222 Monday through Friday between 11 am and 1 pm or send an email anytime to actionline@khon2

com Sean Ibara, KHON2 News