Sacto 9-1-1

By Bill Lindelof
blindelof@sacbee.com

Hundreds of local cases in which thieves have collected credit-card numbers and used them to fraudulently make purchases have been traced to customers who frequented one Roseville restaurant, police said today.

Roseville police said that hundreds of credit-card numbers were compromised at Paul Martin's American Bistro.

Detectives believe that the problem is isolated to computer systems at the restaurant's site, 1455 Eureka Road, and "did not involve the external financial services network or any third-party data processing service," according to a police news release.

The cyber criminals who perpetrated the fraudulent credit-card activity are not known and could be operating anywhere in the world, police said.

The crooks were able to access the restaurant's credit-card processing system and steal credit-card numbers, which were then sold to other criminals and used to make purchases, police said.

Restaurant management is fully cooperating with the investigation. Paul Martin's has brought in computer security specialists to go over the restaurant's system to confirm they have found the only breach, police said.

They are also working to install safeguards to prevent further problems.

The restaurant remains open for business.

Employees will be using alternate methods to process credit-card transactions until the computer experts finish their work.

Restaurant management thanked the police department, the U.S. Secret Service and others for helping identify the data breach.

"We are doing everything in our power to ensure that our systems are safe, secure and locked down," said Ben Magana, operating partner of the restaurant.

The earliest of the cases under investigation appears to date back to March, said Dee Dee Gunther, police spokeswoman, said last week.

The pattern became apparent earlier this month, when lending institutions contacted the department after noting that many of the credit-card fraud victims at some time over the past several months used their credit cards in Roseville.

Will Holbert was a lunch patron at Paul Martin's on Aug. 15 and may have had his credit card compromised.

During the first week in September he got a call from his credit union asking him if he had tried to withdraw $3,500 from Barclay's Bank in England.

"In fact, the money was withdrawn," he said. However, the withdrawal was not by Holbert.

"My stomach dropped down to the floor but I was reassured that I would not be held liable for the loss," Holbert said.

Holbert said he feels a bit vulnerable to credit-card fraud and assumes he was part of the credit-card comprise fraud.

"The credit-card company advised me to check my online account as frequently as possible," he said.

Police advise consumers who notice unauthorized or attempted unauthorized transactions to:

- Immediately notify the lending institution of the potential compromise.

- Ask the lending institution to block the old credit card and issue a new one with a new number.

- File a report with a local law enforcement agency.

- Continue to closely monitor credit-card transactions, and if fraud has occurred, place a fraud alert with the three major credit reporting bureaus, Equifax, TransUnion and Experian.

Although criminals are able to use stolen-credit card numbers temporarily, police said, financial institutions usually will reimburse customers for their losses and block the account.

Call The Bee's Bill Lindelof, (916) 321-1079.