Target Breach Global Impact – Non-US Cards Hitting Black Market

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It looks like it isn’t just American consumers dealing with the fall-out from the Black Friday Target breach.  A huge batch of 500,000 cards from non-US banks, with a big percentage from Latin America, have shown up on the black market for sale.  These “world dumps” fetch a premium and are selling from about $60 to well over $100 per card.
It is of course extremely common for well-heeled Latin American consumers to visit the US on shopping holidays where they can load up on goods to avoid customs delays back home.  Many Latin American banks have already adopted EMV or chip and PIN technology to help prevent wholesale copying and cloning of cards, but most EMV cards come with traditional magnetic stripe technology so foreign consumers can use their cards in the US.
The impact of this breach is unclear on the affected Latin American banks.  The rules that govern liability and fraud losses differ from country to country and in some cases, the consumer might end up holding the bag.  We recommend that all non-US banks pay special attention to card-not-present transactions in the coming days.

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