April 28, 2006

By Peter Kenny

Checking on earlier reports that there was a credit card security breach at Morgan Stanley, it has been discovered that over 2000 UK credit card holders have had their information compromised. The Clydesdale Bank was discovered to have been affected by this security breach earlier.

Mastercard, one of the largest credit card payment system in the world, has notified their own credit card issuers of this security breach last week. Further steps taken included calling affected credit card holders to close their current credit card accounts and issue new ones.

Initial fears there may be more issuing banks affected seem to be confirmed now that Morgan Stanley have been named along side The Clydesdale Bank.

This news story was discovered by www.silicon.com who were contacted by a disgruntled Morgan Stanley credit card holder who complained they were given limited information from Mastercard in case it damaged their reputation.

Fraudulent activity has already been registered on many credit card holders accounts as a direct consequence of this security breach. It is feared this may be the tip of on iceberg.

Mastercard has failed to comment on the source of the security breach but did say that all appropriate action has been taken.