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. and luxury chain Neiman Marcus Group. 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.

A spokesman for MasterCard Inc. said the card network has issued an alert to banks that issue credit cards about the potential breach.

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.

It wasn't immediately clear how extensive any breach may have been or how many cards may have been compromised.

The California DMV had licensed 24 million drivers and registered nearly 32 million vehicles as of the beginning of 2013, according to its website.

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. There is no evidence yet that the DMV's computer system was breached, Mr. Botello said.

Write to Robin Sidel at robin.sidel@wsj.com and Jim Carlton at jim.carlton@wsj.com

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