Five Star Bank Hit by Debit-Card Fraud

Summary


A debit-card security breach at a discount grocery chain that operates in 11 states is costing Five Star Bank as much as $850,000 in fraud losses.

Financial Institutions, the Warsaw-based parent of the bank, expects to suffer a pretax loss of about $750,000 to $850,000 in the fourth quarter in connection with fraudulent debit transactions, the company disclosed in a regulatory filing with the Securities and Exchange Commission.

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Extract


Five Star Bank Hit by Debit-Card Fraud

In the filing, the company said that it "began experiencing an increase in the number of customers reporting third-party fraudulent debit card usage" in October. It is "currently eval...

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