Posted On August 25, 2022 Consumer Privacy & Data Breaches
August 24, 2022 – Recently, customers of Ally Bank have reported unauthorized activity on their debit cards. While the company has yet to confirm any type of data breach, an Ally spokesperson acknowledged that the financial industry as a whole has seen an “uptick” in the rate of debit card fraud activity. Based on secondary reports, it appears that the fraudsters are engaging in “card testing”, which is a scheme where thieves make tiny charges on a card to check if it is valid before using the card for larger purchases.
If you believe that you were impacted by Ally bank debit card fraud, Ally may leave you with more questions than answers. However, the data breach lawyers at Console & Associates, P.C. are actively investigating the Ally Bank data breach on behalf of people whose information was exposed. As a part of this investigation, we are providing free consultations to anyone affected by the breach who is interested in learning more about the risks of identity theft, what they can do to protect themselves, and what their legal options may be to obtain compensation from Ally Financial, Inc.
News of the Ally bank debit card fraud scheme is still relatively hard to come by, as most reports are anecdotal accounts shared by social media users. However, based on what Ally customers have shared, it appears that hackers have obtained debit card numbers, and presumably PIN numbers, and are using this information to make small charges in an attempt to determine whether a card is valid.
For example, one news source details a small business owner who awoke to find approximately 800 transactions on his merchant account. He contacted his payment vendor, who refunded the charges. The next day, he woke up to a slew of missed calls. When he checked his merchant account, there were 11,000 more transactions, each for $1. Many of these charges were made to Ally bank debit cards.
However, in response to the claims of fraud, an Ally bank spokesperson responded, “Across the board, the financial services industry is experiencing an uptick in debit card fraud activity caused by bad actors … Call centers are experiencing longer-than-usual wait times due to nationwide staffing challenges in combination with an increase in call volumes. This is not unique to Ally.” Meanwhile, customers of Ally Bank are reporting wait times of more than an hour to have a representative address their concerns.
Founded in 1919, Ally Financial, Inc. is a bank holding company with its headquarters in Detroit, Michigan. However the company was originally named GMAC, Inc, but changed its name to Ally Financial in 2010. Ally Financial, through Ally Bank, provides a wide range of financial services to customers, including car loans, online banking, corporate lending, car insurance, mortgage loans, and an electronic trading platform. However, Ally Bank is a strictly online bank, meaning it has no physical branches. Ally Bank employs more than 10,500 people and generates approximately $8 billion in annual revenue.
At Console & Associates, P.C., our consumer privacy lawyers monitor all security and data breaches to help affected consumers pursue their legal remedies. We offer free consultations to victims of data breaches and can explain your rights in clear, understandable terms so you can make an informed decision about how to proceed with your case. If you’ve been affected by the Ally Bank debit card fraud scheme or any other data security incident, Console & Associates, P.C., will investigate your case at no charge and offer you thorough advice about how to most effectively proceed with your case. If you decide to bring a case, we only get paid if you do. If your claim is successful, any legal fees are either paid by the defendant or come out of the funds recovered from the defendant. If your claim doesn’t result in a recovery, you will pay nothing.
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