1st Source Bank is reissuing all of its debit cards following a computer breach May 12 at
the South Bend, Ind.-based institution. Hackers broke into 1st Source's computer and compromised some cardholders' debit card information, says Larry Bauer, the bank's vice president of marketing.
The breach struck 66 branches in Michigan and Indiana. "A small percentage of cards were affected," Bauer says, declining to say how many cards were compromised or how many the bank has issued overall. "We're pleased to report no evidence to date of fraud as a result of the breach. No money has been stolen," he says.
The bank, which issues debit MasterCards, sent letters May 28 to inform customers of
the breach, says Bauer. In the letters the bank encourages cardholders to monitor
their accounts for suspicious activity, he says.
Though the breach compromised only some cards, the bank chose to reissue all debit cards to ensure the safety of cardholder information, Bauer says. Reissuing the cards comes at a great cost to the institution, he says, declining to name a specific figure. "We're a little over a $4 billion institution, so we have quite a few clients" receiving replaced cards, Bauer says.