MasterCard, VISA Warn of Massive Data Breach

Krebs on Security reports:

VISA and MasterCard are alerting banks across the country about a recent major breach at a U.S.-based credit card processor. Sources in the financial sector are calling the breach “massive,” and say it may involve more than 10 million compromised card numbers.

The report is quite extensive and on going.

Fraudulent card transactions appear to be spreading.

This is one of the dangers of centralized banking that Bitcoin avoids.  With Bitcoin, private user information is never transmitted to a third party, unless it is a Bitcoin exchange for the purposes of buying coins with fiat money.  Other than the exchanges, Bitcoin transactions can be completed in a completely anonymous fashion.

In order for an attacker to gain access to someone’s Bitcoin wallet, the attacker would have to directly attack that person’s PC unless the wallet file is hosted by an exchange type of website.  This reduces the risk of a massive data breach by keeping account information distributed.  It is much more difficult to attack millions of PCs than it is to attack one server that contains all the data.