Five Star Bank hit by debit card fraud

A debit-card security breach at a discount grocery chain that operates in 11 states is costing Five Star Bank as much as $850,000 in fraud losses. Financial Institutions, the Warsaw-based parent of the bank, expects to suffer a pretax loss of about $750,000 to $850,000 in the fourth quarter in connection with fraudulent debit transactions, the company disclosed in a regulatory filing with the Securities and Exchange Commission. In the filing, the company said that it “began experiencing an increase in the number of customers reporting third-party fraudulent debit card usage” in October. It is “currently evaluating” those reports and has taken steps to assess and limit its exposure to losses.
Posted in: Debit Card Fraud