By Renee Worthing

Staff Writer

In the wake of the March 17 revelation that as many as 4.2 million credit and debit card numbers were stolen through Scarborough-based Hannaford Brother’s. card-authorization system, local banks have been reassuring customers their accounts are safe.

   Town and Country Federal Credit Union, which has branches in Portland, Scarborough, Saco and two in South Portland “has been answering calls 24/7,” Town and Country Federal Credit Union President and CEO Chris Daudelin said.

   The credit union was notified by VISA March 13 of a compromise of credit and debit card information, Daudelin said.

   “We did not officially know (who) the retailer (was) until Monday (March 17),” he said.

   “We really want to emphasize that no customer will pay for any fraudulent activity,” Daudelin said. “Our Zero Liability fraud protection for all VISA debit and credit cards means customers have 100 percent protection.”

   He said while the potential for fraud is present, there has been no fraudulent activity detected against Town and Country Federal Credit Union accounts.

   “We will reissue any compromised cards, without regard to fraudulent activity,” Daudelin said, adding between 10,000 and 15,000 Town and Country debit cards may be re-issued.

   However, he said customers should continue to use their cards as normal.

   “There is no reason to stop or reduce use of your card(s),” he said, adding Town and Country has several procedures in place to protect members’ personal data and account funds.

   Daudelin encouraged customers to monitor their accounts on the Town and Country Credit Union Web site or by using the 24-hour phone banking system.

He said any suspicious activity should be reported to the bank immediately.

“We will research it and notify local authorities,” he said.

Kennebunk Savings Bank Senior Vice President Martha Muldoon said she received about 70 calls from concerned customers as of Tuesday.

“We have assured each of them that they are not responsible for fraudulent activity on their account,” Muldoon said.

Kennebunk Savings Bank serves customers at 13 locations, including Biddeford, Kennebunk and Sanford.

She said as of Tuesday, none of Kennebunk Savings Bank customer accounts had confirmed reports of fraudulent activity.

“But, we are looking at the magnitude of this breach,” she said.

She said any suspicious activity will result in the debit or credit card being deactivated, and a new card issued.   Muldoon encouraged Kennebunk Savings Bank customers to closely monitor their accounts through the Internet rather than waiting until bank statements arrive in the mail.

“I’m so disappointed that a prestigious company like Hannaford would leave itself open to compromise,” she said. “The banks have to pay for this.”

She said Hannaford customers who wrote checks for their purchases should not be concerned because check information  is sent electronically.

Muldoon encouraged customers to call the bank immediately if they notice suspicious activity on their accounts.

She said she knew of at least one customer who received an e-mail that appeared to originate from Kennebunk Savings Bank.

She said the e-mail featured the Kennebunk Savings Bank logo and advised the recipient that fraudulent activity had occurred. It also said the bank had closed the account.

“It looked official,” she said. “The e-mail included a number to call to begin the process of reactivating the account. Kennebunk Savings Bank does not send these kinds of e-mail.”

She said the telephone number provided on the e-mail is answered by an answering machine that falsely announces the caller has reached Kennebunk Savings Bank.

She said this kind of e-mail, called “phishing” is a fraudulent attempt to acquire personal or financial information by someone not associated with Kennebunk Savings Bank, and an alert regarding “phishing” has been posted on the Kennebunk Savings Bank Web site.

Daudelin said while he was not aware of any Town and Country customers receiving fraudulent e-mails, they should be aware of them.

“We will not contact you via e-mail or phone,” he said.

He said if someone receives a telephone call or e-mail from someone claiming to be a Town and Country Federal Credit Union representative, it is important not to divulge any information.

“Contact us immediately and notify the authorities,” he said.

Key Bank Public Affairs Representative Lynne Woodman said Key Bank monitors debit card activity every day.

“When we learned of this data breach, we increased our level of surveillance on client debit cards,” she said. “If we identify suspicious activity on a debit card, we will alert that client directly. The alert is usually a phone call, and if the client asks, we suggest a return phone call to our toll-free line to verify our identity. We never ask for identifying information when verifying transactions. We always advise clients to monitor their accounts closely, via statements, online or via Key’s toll-free call centers and report any suspicious activity immediately.”

Hannaford Supermarkets Spokesman Michael Norton said the company became aware of unusual activity on Feb. 27.

He said an immediate investigation revealed a “window of time of about three months before, when the payment systems were attacked.”

“There is a potential exposure (of card information) in all 165 stores,” Norton said.

He said the information that was breached did not include names, driver’s license numbers or social security numbers.

“There is a complexity in making electronic payments an easy and convenient thing,” Norton said. “We will harden our system. It (breach) has never happened before and we don’t want it to happen again.”

Norton said federal agents are involved in the investigation.

“This is a serious crime,” he said, noting the United States Secret Service is routinely involved in investigations involving data intrusion.

He also said Hannaford would not contact customers by phone or e-mail regarding the breach of data.

“We certainly would not call seeking personal information,” he said. “We are happy to talk to our customers, but we won’t be requesting your name unless you contact us first. Even then, we won’t ask for personal information.”

While banks were busy assuaging concerned customers, shoppers at the Sanford Hannaford seemed unfazed by the breach.

Sanford resident April Leeman, said she was initially concerned about writing a check at Hannaford until she called her mother who works at a bank.

“I’ll definitely keep an eye on my statements,” Leeman said. “This (breach) makes me look twice. It’s always in the back of my mind, but I won’t stop shopping at Hannaford.”

Jan Webber of Sanford said she was shocked when she heard about the security breach.

“I don’t pay by credit, I pay cash,” she said.

Sue Creteau of Shapleigh also said she only pays by cash.

“It doesn’t affect me all,” she siad.

Sanford resident Ron Cote said he and his wife always check their bank statements carefully.

“My wife was already on it this morning,” he said.