Thanks to having safeguards in place for such a situation, no McClain Bank customer lost any money last week when an issue occurred with some debit and credit cards.
“Unfortunately, financial institutions and credit card companies experience debit and credit card fraud from time to time,” McClain Bank CEO Donald Sherman told The Purcell Register after the incident early last Thursday morning.
“It is not uncommon for most consumers to have had their debit card and credit card reissued due to fraud,” Sherman said.
There are several reasons why fraud could occur. One of the primary reasons is that a card number could have been used at a retailer and subsequently the retailer’s payment system was compromised.
“We have no control over the retailer or merchant’s payment systems,” Sherman said.
McClain Bank has safeguards in place to protect customers from debit card fraud.
“We have dollar limits on all of our cards,” Sherman confirmed. “We utilize a fraud unit that monitors debit card activity 24/7 and notifies our customers when warranted.
“We also have regular audits to test our systems,” Sherman continued. “We are proactive to reissue cards to prevent fraud and to minimize losses.”
In the issue of December 26, the bank executive said all affected customers were notified.
“No one lost any money and this was not a data breach,” Sherman said. “Unfortunately, there were some erroneous and untruthful social media posts about the situation.
“So the bank made a simple and clear statement on social media and television media picked up on the post and made a story of it. With our safeguards in place, we had already contacted our customers.”
By the time television picked up the story without contacting any McClain Bank officer, the situation was already resolved.
“We appreciate our loyal customers and the opportunity to serve them,” Sherman concluded.