April 12, 2010
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News: MN Business Has Possible Credit Card Breach
A Stillman, Minnesota resident who posted a credit card fraud warning on Facebook had the Stillman Police Department swamped with calls. Police Chief John Gannaway said that over 100 complaints came pouring in after Ted Kozlowski posted his warning on Facebook claiming that their stolen credit card numbers have been used nationally as well as globally. The authorities suspect that the stolen credit card numbers are somehow connected to a local Stillwater business. Victims have discovered fraudulent card charges as high as in the thousands from countries ranging from Spain to Russia. Fraudulent charges include gas purchases in from New York to California, discount stores, fine jewelry, and apparel stores.
According to Kozlowksi, whose career is web marketing, the problem is "pretty widespread." Kozlowski said stolen credit card numbers are a huge draw for a massive online black market which is virtually untraceable. The authorities suspect that the theft could be related to victims who used their credit cards at the Mad Capper Saloon and Eatery on Stillwater's Main Street; however, they have not yet been able to figure out how the theft occurred. Jeff Chilson, owner of the Mad Capper has apologized to their customers and has indicated that there have been other businesses connected to the theft as well.
One of Kozlowski's theory is that hackers may have gained access to the computers of businesses that manage the local businesses receipts. The company that processes the Mad Capper's credit card processing, Merchant Card International of Florida, examined the restaurant's computer system and found it secure. Merchant Card is confident that the Mad Capper is not the thief's point of entry. The Stillman Police Department has called in a Federal Agency who specializes in this type of theft to conduct an investigation. Chief Gannaway said the involvement of an international theft will make the investigation more difficult.