Pinkerton Insights Podcast

Last week in the US, Discover Financial Services Inc. informed the Office of California’s Attorney General of a data breach that they discovered in August 2018, and might affect some of its clients. The company filed a formal notification on January 25; however, the document does not provide information on the number of impacted cardholders, nor on the specific information that was compromised. The company has started to issue a new card for its clients and, in some cases, new account numbers to prevent any fraudulent schemes. The company was emphatic in its pronouncements that the systems were not hacked and that it was a routine notification – required under California state law if more than 500 residents are involved.  We find it highly likely that the company will continue to replace the cards of the potentially affected clients in the short to medium term as a measure to diminish the risk of fraudulent operations. Furthermore, Discover has announced that they would cover unauthorized purchases made possi