By Robin Sidel and Jim Carlton
The California Department of Motor Vehicles is investigating a
potential breach of its credit card processing systems, in what may
be the latest in a string of attacks that have highlighted
vulnerabilities in the way payment data is handled.
Earlier attacks struck retailers like discounter Target Corp.,
luxury chain Neiman Marcus Group and beauty supply chain Sally
Beauty Holdings Inc. This one stands out, because it was a
government agency that may have been the victim.
"The Department of Motor Vehicles has been alerted by law
enforcement authorities to a potential security issue within its
credit card processing services," spokesman Armando Botello
said.
MasterCard Inc. said it has issued an alert to banks that issue
credit cards about the potential breach.
It wasn't immediately clear how extensive any breach may have
been or how many cards may have been compromised.
As of Jan. 1, 2013--the most recent date for which data has been
released --the DMV reported 24 million licensed drivers in
California and 32 million registered vehicles.
Representatives of the credit-card industry and the motor
vehicle agency were discussing the situation on a conference call
Saturday evening, a person familiar with the matter said.
The DMV said it is investigating the potential breach and
working with state and federal law enforcement, its credit card
processor, and card companies themselves. It is also performing a
forensic review of its computer systems.
Mr. Botello said there is no evidence yet that someone had
infiltrated the agency's computer systems.
Motor vehicle agencies in states including Utah and Minnesota
have reported unauthorized access to drivers' personal data in
recent years. Such incidents rarely have included credit-card
information, however.
The California DMV has been hit with other computer problems in
recent years. In August 2012, for example, lines formed at DMV
offices statewide after the agency's computers crashed due to
problems DMV officials attributed to network or router
problems.
Last week, California Attorney General Kamala Harris warned the
state was a top target for international gangs of computer
hackers.
Write to Robin Sidel at robin.sidel@wsj.com and Jim Carlton at
jim.carlton@wsj.com
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