September 1, 2009, 12:00 AM

Network Solutions breach exposes cardholder data of 4,300 web retailers

Network Solutions is working with credit-reporting agency TransUnion to assist about 4,300 online merchants whose customer credit card account data may have been stolen.

by Paul Demery

After a security breach that affected more than 570,000 cardholder accounts, Network Solutions LLC is working with credit-reporting agency TransUnion LLC to assist about 4,300 online merchant clients whose customer credit card account data may have been stolen.

Network Solutions reported in July that "in the ordinary course of business" it identified unauthorized code that may have captured credit card account data from about 573,928 accounts from servers supporting web sites of some client e-commerce merchants and transferred the cardholder data to servers based outside of the company. The breach occurred between March 12 and June 8 of this year.

"On July 13, 2009, we were informed by our outside forensic experts that the data being transferred may have included credit card information," Network Solutions says. It adds that transactions that occurred after June 8 were not exposed to the unauthorized code.

The company says it is cooperating with law enforcement officials in an investigation of the security breach and has not found any indication of fraudulent use of compromised credit card account data.

"At this point, we have no reports or other reasons to believe that any credit card account information has been misused," Network Solutions says on a web site it created to provide information on the security breach, CareandProtect.com.

Network Solutions has retained TransUnion to notify consumers whose personal information, including account numbers, names and addresses, may have been stolen. Provided at no cost to the merchants, TransUnion`s services include assembling mailing lists for contacting each affected merchant`s U.S.-based customers, sending these customers notifications that comply with state laws regarding security breaches, and providing individual customers 12 months of free credit monitoring service.

paul@verticalwebmedia.com

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