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http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=security&articleId=9074339



By Jaikumar Vijayan

April 2, 2008

Computerworld



In a security breach that sounds similar to the one disclosed by

Hannaford Bros. Co. last month, the Okemo Mountain Resort ski area in

Vermont announced this week that data from more than 46,000 credit and

debit card transactions may have been compromised during a system

intrusion over a 16-day period in February.



Okemo said in a security advisory released on Monday that the breach may

have affected customers who used their payment cards at the resort in

Ludlow, Vt., between Feb. 7 and Feb. 22, the time frame when the

intrusion took place. The intruder or intruders may also have accessed

data from card transactions processed between January and March 2006,

according to the advisory.



Bonnie MacPherson, a spokeswoman for Okemo, said today that at least

some of the data appears to have been stolen as the recent payment card

transactions were being authorized. "We can tell you that this was a

real-time theft," McPherson said. "The information was being taken as

the cards were being swiped."



If that is actually the case, it could make the breach at Okemo a close

cousin to the much larger one announced by Hannaford on March 17. In the

Hannaford breach, malware installed on servers in each of the

Scarborough, Maine-based company's grocery stores intercepted card data

as the information was being transmitted from point-of-sale systems to

authorize transactions.



Hannaford said in a letter sent to Massachusetts officials last week

that up to 4.2 million credit and debit card numbers, as well as the

expiration dates of the affected cards, were stolen by the malware

program and then sent in batches to a server hosted by a foreign ISP.

The grocer added that the discovery of the mass malware installation

prompted a wholesale replacement of its store servers, plus other

unspecified steps aimed at ensuring "that no versions of the malware

remain anywhere on the company's systems."



And Hannaford and Okemo may not be the only businesses disclosing

breaches involving payment card data in transit between systems.

According to McPherson, law enforcement authorities who are

investigating the breach at Okemo told resort officials that they

currently are looking into about 50 reported incidents of the same sort

in the Northeast alone.



McPherson said the system intrusion was discovered in late February but

declined to comment on how the resort learned of it, citing the ongoing

investigation. She added that Okemo has taken steps to close the breach

and prevent further intrusions, but again didn't disclose any specific

details.



In addition to notifying law enforcement officials, Okemo has informed

Visa, MasterCard and American Express of the breach. But the resort

doesn't have sufficient information on hand in its systems to directly

contact all of the individuals who might have been affected, McPherson

said. Resort officials have been told, she said, that customers will be

contacted directly by the banks that issued their credit and debit

cards.



Okemo doesn't know for sure how many cardholders were affected. But in

its advisory, the resort said that data from up to 28,168 card

transactions processed in February may have been compromised. Okemo

noted that the number of customers potentially affected may be smaller

than that number because some cards might have been used for multiple

transactions. In addition, data on 18,401 individual credit cards used

at Okemo from in early 2006 may have been accessed during the intrusion,

the resort said.



According to Okemo, a computer forensics review by an outside security

consultant found no evidence of any security breaches on the systems at

the Mount Sunapee ski area in Vermont or the Crested Butte Mountain

Resort in Colorado. All three ski areas are owned by the same company.



After Hannaford disclosed its breach, some analysts said it was the

first time that attackers had swiped payment card data while the

information was in transit on such a large scale. Most of the card data

compromises reported thus far have involved information stored in

databases on systems or in storage devices. But with companies putting

more effective controls around stored data, attackers may be shifting

their attention to data in transit.





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