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DALLAS -- Hackers successfully accessed Citibank's network of ATMs inside 7-Eleven stores, stealing millions of dollars and personal information from unsuspecting customers, CSNews Online reported yesterday. It is estimated the breach began in October of last year. To date, it is unclear how many of Citibank's approximately 5,700 branded ATMs in 7-Eleven stores were impacted.
7-Eleven spokeswoman Margaret Chabris told CSNews Online: "7-Eleven Inc. is aware of the federal investigation in New York concerning ATM fraud that has apparently impacted Citi customers. It is 7-Eleven's policy not to comment on any aspects of this matter because it is an ongoing investigation."
Citibank, part of Citigroup Inc., has declined to comment on the technique or how many customers' accounts were compromised. It said it notified affected customers and issued them new debit cards.
"We want our customers to know that, consistent with legal requirements, we do not hold them responsible for fraudulent activity in their accounts," the bank said in a statement released last week.
Citibank does not own or operate the machines. The Houston-based Cardtronics Inc. owns all the machines, but only operates some, while the Brookfield, Wis.-based Fiserv Inc. operates the remaining machines.
"We understand that Citibank has already contacted any account holders who may have been impacted or that needed to receive a replacement card," said Chabris. "However, 7-Eleven is confident that its ATM provider, Cardtronics, has included the appropriate safeguards designed to prevent unauthorized access to our customers' personal data in the ATMs located in our stores today."
In other news, Unisys Corp.'s Canadian subsidiary, Unisys Canada, was awarded a contract from NEC Corp. of America to provide outsourced IT support services for 470 7-Eleven retail convenience stores throughout Canada.
"Unisys outsourcing expertise combined with NEC's retail solution integration skills will assist us in growing our 7-Eleven business in Canada," Sharon Stufflebeme, 7-Eleven's chief information officer, said in a released statement. "We'll be able to serve our customers more effectively and efficiently through enhanced in-store technology support."
Valued at $6 million over a three year term, the contract states that NEC Corp. of America is the prime contractor and will manage applications development and support for 7-Eleven Inc. Unisys Canada will provide maintenance and support services for IT back-office equipment, on-site wireless networks, point of sale (POS) and inventory ordering systems for the 470 Canadian 7-Eleven retail stores from Ontario to British Columbia.
"We look forward to working with Unisys on this important initiative," Naohide Takatani, general manager, Retail Solutions Group for NEC Corp., said in a released statement. "Drawing on Unisys expertise in technology support and maintenance in this engagement with 7-Eleven expands the range of benefits we can provide our client."
Bob Binns, president, Unisys Canada, said in a released statement: "Unisys is confident that in working with our partner NEC, we will provide 7-Eleven with a secure, flexible IT infrastructure that can accommodate its growing business in Canada."