Cotton Traders notified card issuers when the security breach occurred
Credit card details stolen from Cotton Traders
/v3-uk/news/1942368/credit-card-details-stolen-cotton-traders
12 Jun 2008, Andrew Charlesworth , V3
Clothing retailer Cotton Traders has confirmed that customers' credit card details were stolen from its website in January this year.
The retailer, founded by ex-England rugby players Fran Cotton and Steve Smith, claimed that the credit card details were encrypted.
Cotton Traders notified the issuers when the security breach occurred, and said that "most" of the affected cards were cancelled and reissued immediately.
"We can confirm that our customer credit card data is encrypted on our website, but if any of our customers have been a victim of fraud they should contact their card issuer," said the company in a prepared statement.
Around 38,000 credit cards were compromised, according to some reports, although Cotton Traders has dismissed the number as wildly inaccurate.
The retailer said that it has since raised the levels of security on its
site.
Security experts suggest that such cyber-crimes are an inevitable part of an
increasingly online economy.
"As people move their businesses to the web, so crime will follow," said Charlie Abrahams, European vice president at MarkMonitor.
The fact that the news of the data theft has not emerged until now is a facet of UK data protection laws.
In California, for example, companies that lose personal details of customers or employees are required by law to notify the victims within a short time. News of the loss is therefore made public immediately.
Although not a legal requirement in all states, most US companies adopt the more stringent Californian regulations.
No such requirement exists in the UK, but there are increasing calls to implement tougher legislation.
© Incisive Media Investments Limited 2010, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Do you agree?
CREDIT CARD FRAUD
It may have been good for Cotton Traders to contact Credit card companies, but they didn't bother contacting those that paid by Debit Card. I was one of those affected and had over £1000 taken from my bank account. I managed to get the money back in the end, but it didn't help matters at the time. If more people were informed and not just the Credit Card companies, then we could have done something before it was too late.
Posted by UNHAPPY SHOPPER, 12 Jun 2008
Makes you think????
I too have been the recent victim of £1500 being taken out of a bank account. Whilst not being told by my bank who was responsible for my Debit and Credit card details being compromised, I am coincidentally a customer of Cotton Traders, and until being told by a friend wasn't even aware that they had had the data theft.
My bank were very good, but fortunately as I chech nearly everyday I spotted the transaction in the process of going through before it appeared on my statement.
I have no faith now in Internet shopping and will revert back to old fashioned methods of shopping.
Posted by Unsettled Internet shopper, 13 Jun 2008
cotton traders
Cotton traders you have just lost another customer. I was completely unaware of the incident, and just had £4000+ spent on my credit card by unknown source. Obviously its being dealt with, but would it not have been easier to inform customers before fraud is commited. Thank you Mr Cotton good buisness move!
Posted by Another unhappy customer, 13 Jun 2008
I told you so!
I work for an Ethical Hacking company, and I was told by a family member 4 weeks ago that they had been the victim (to the tune of £1500 sent out of the country via Western Union) of credit card fraud having made their first (and only) transaction using the said card.
I called to inform their IT and Compliance team and was told that there was no such problem and that they were uninterested in having and external company checking their system vulnerabilities.
Bet they wish they'd not said that now!
Posted by Ethical Hacker, 13 Jun 2008
and another one
We too had the misfortune of being a Cotton traders customer and our credit card was used for £2000 + of goods. Best of it was that this happened in March - two months after Cotton traders were aware- had we personally have been aware in January, the card would have been cancelled and the fraud wouldn't have happened. Seems like sheer madness that customers aren't advised - the credit card companies obviously can't cope if the perpetrators acn still commit fraud two months after the fact and it's costing them and making credit card theft worthwhile. Also contacted Cotton traders to put this point - basic response was "your credit card company will cover any loss" nice slopey shoulders but it doesn't cover the hassle and the fact that my personal information is available for any identity fraud this theif wants to progress with !! Messrs Cotton & Smith -another lost customer....
Posted by another Cotton Trader victim, 20 Jun 2008
Two more victims of Cotton Tradrers
Both my wife and I had fraudulent transactions on our credit cards about a month apart - we had both used our cards to buy from Cotton Traders on line. In both cases our Card Issuer picked up the fraudulent use, called us and blocked the cards. These were about a month apart and before we had heard about Cotton Traders loss of customers card details. For Cotton Traders not to inform each customer was unforgivable. Each of us has had a lot of unecessary inconvenience. If we had been away when each incident happened and our cards had been blocked we could have found ourselves in difficulties in paying bills. Losing customer details is bad enough but finding out and not letting everyone know is the sign of a company that has no regard for its customers. To say that they had informed Barclays (their bank) and all customers had been issued with new cards is a lie. Since these incidents a friend of my daughters who also bought from Cotton Traders on line has had her card used fraudulently. As far as I can see if you were a Cotton Traders customer your card is most likely to be used fraudulently - are there any customers (ex customers) who have not had this happen to them (apart from those who had had new cards since January). To rub salt into the wound we both received leters from our Card Issuers regarding card security when later we discovered that the fault was that we had bought from what was a 'reputable' UK company. Cotton Traders did not have the decency to communicate with their customers and seemed to have used a bank who failed to do what they said they had done.
Posted by John and Mary - Two Ex Cotton Traders Customers, 29 Jun 2008
Security Breach Cotton Traders
They lie, not all cards were cancelled or banks told. Mine were not. I lost £350, a friend has lost £1000 ! and thats just those people that I know, whats the loss amongst 38,000 customers !
So the details could NOT have been encrypted could they ?
Posted by dugsey, 04 Jul 2008
Another lost customer.
It is now the end of September and the first I know about my mother's (80 yrs old!) credit card data being stolen is when I read it today on BBC News website! Now I will have to worry her over almost a year's visa statements and probably kiss goodbye to any theft given the time. It is almost like aiding and abetting theft not to inform customers.
Posted by Joseph Allan, 29 Sep 2008
unbeleivable!!
i found out on 9.10.2008 that my credit card had been used to the tune of £5800 i had only used my card once on the internet to buy from cotton traders.i was never informed of any theft.It has taken 3 months to be sorted out and is still not right. as i am being charged interest and late payment fees for not paying off minimum amount very stressfull!cathy
Posted by cathy, 01 Jan 2009
has Cotton Traders finally disappeared??
It seems that no one can even get hold of Cotton Traders anymore......does anyone know whether they are still in business??
Posted by Primmie, 18 May 2009