05 Mar 2014

US Bank Warns Against Using Credit Cards to Pay Chicago Cab Rides

A data breach is taking place in Chicago taxis when a passenger pays using credit and debit cards in many taxis, the First American Bank in Illinois says in a public message to its customers.

The bank advises customers to avoid inserting their First American Bank cards in taxis from American United, Checker, Yellow and Blue Diamond as well as any other company that uses Taxi Affiliation Services and Dispatch Taxi to process card transactions.

The fraud shows up in bank statements as “Chi Taxi,” and is believed to have started in early December 2013, according to security researcher Brian Krebs. The bank has already reissued 220 cards and has counted more than 466 suspicious charges worth $62,000.

Bank representatives reported the “criminal activity” to MasterCard and have tried to contact the payment processing companies behind it, with no response. The City of Chicago Department of Business Affairs and Consumer Protection have also been asked to help solve the fraud.

“Until the situation is rectified, we will continue to close and reissue cards that have been exposed,” the Tom Wells, Chairman of the Board, says.