JPMorgan Imposes Spending Caps On 10% Of Its Debit Cards Due To Target Security Breach

Tyler Durden's picture

That yet another major retailer was hacked, as happened last week when Target announced that as many as 40 million credit and debit cards used from November 27 until December 15 at its stores  (one wonders why it took the retailer three weeks to realize/announce what was happening) had been "compromised", is no surprise. What was a big surprise is the action one major financial company took in response to the mega hack. The company in question was JPMorgan, and what it did was to tell customers whose debit cards had been used at Target stores during the period in question, that it was limiting use of their cards to cash withdrawals of $100 and purchases to $300 per day.

However, what is perhaps most surprising is the sheer number of cards with spending caps: The new limit effects roughly 2 million accounts, or roughly 10% of Chase debit card accounts, according to a bank spokeswoman.

So with millions of Americans blocked from bulk purchases just in time for Christmas, will the Census department be forced to "seasonally adjust" December retail sales data substantially higher to "pro forma" what spending would have been net of computer hacks?

"We are taking additional measures to protect Chase accounts from the Target breach, and our branches and call centers are there to help these customers," a Chase spokesperson said.

Reuters adds that the bank said in the letter that it plans to reissue affected debit cards over the coming weeks and in the meantime said employees at its 5,600 branches would help those who need more cash. Many branches will stay open late "if needed," the letter said.

From the WSJ:

Target is working with the Secret Service as well as a forensics unit at Verizon Communications to investigate the breach, which lasted from Nov. 27 until Dec. 15. The company is working to set up a year of fraud protection monitoring for customers affected, Target spokeswoman Molly Snyder said on Saturday.


Typically, banks are responsible for financial losses tied to fraudulent transactions, though in some significant cases that responsibility may be passed on to the merchant. After a similar data breach at discount retailer in 2007, that company agreed to pay $65 million to Visa Inc. and MasterCard Inc. to resolve potential claims by banks that lost money.


On Saturday, Target said it is continuing to help customers obtain credit reports and change pin numbers on their cards to guard against potential fraud.


The security breach raises concerns that Target might lose sales during the final days of the important year-end holiday shopping season. Target offered customers at its U.S. stores a 10% discount this weekend, a move aimed at drawing customers back to its outlets.

Well, it may not be Cyprus where the capital controls and spending caps resulting from the March near-death experience of its financial system will remain forever a long time; instead what it is is a partial form of capital controls resulting from a "security breach", whereby the bank whose obligation is to prevent fraud retroactively, instead imposes blanket proactive spending limits on all. Luckily, such trial computer hacks (and the Syrian Electronic Army has yet to be blamed) will never take place across the entire financial system, usually just in time when there is a wholesale demand of deposits, if only by that part of the population that stil has cash held at zero interest deposit accounts.

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Truther's picture

Welcome to Capital Controls....

kliguy38's picture

Capital controls???    "We ain't got no capital controls"!   Relax and enjoy the water

Stackers's picture

So the big argument with Bitcoin is how easy it is to steal, and how you're "protected" by the banking system. So your "protection" is the theives cant have your money and neither can you ......... hum ?

Bay of Pigs's picture

They are going to lock everyone out if need be.

SilverIsKing's picture

False flag?

There, I said it. No reason to leave cash in the bank and use debit cards. Better off keeping cash at home and if you must keep it in the bank, keep it in a safety deposit box. They haven't stopped people from accessing their boxes...yet.

0b1knob's picture

This HAS to be an inside job by some one at Target.   Most of the time a breach blamed on outside hackers is the fault of a disgruntled employee.

El Oregonian's picture

It's all preordained and if anyone thinks otherwise must be a shill, or delusional fiat-endorser.

Headbanger's picture

Now just remember.. Just because you're paranoid.. Doesn't mean they're not out to get you!

fonestar's picture

+1 Nirvana reference!

So what this article is basically saying is if you enjoy being treated like a dumb child, then stick with traditional banks and their credit and debit cards.

Headbanger's picture

Oh it's saying a lot more than that.  See my rant below for further details.

I didn't mean to quote Nirvana which I like.  I first heard that saying back in the late 60's

Hongcha's picture

"Just because you're paranoid doesn't mean they're not out to get you."

-- T. Pynchon, Gravity's Rainbow

Boris Alatovkrap's picture

"Target is work with Secret Service"

Same agency is guard JFK... how so much reassuring!

A Nanny Moose's picture

Yup. The overwhelming majority of Information Security breeches are inside jobs. IIRC.

ActionFive's picture

A disgruntled target employee. That's hard to find.. S/

Winston Churchill's picture

Yes  they have.A while ago in FDR's time, but they have done it.

If its not in your hand ,its not yours.

I have family with money still trapped in Cypriot banks.

They were warned , so have you been.

Deo vindice's picture

I wouldn't leave a dime in a safety deposit box. If you can't trust the bank to leave your money in an account, why would you trust them with SD boxes?

There are numerous articles and news stores about banks and governments confiscating the contents of these boxes.

A fool and his money are soon parted. Be wise.

klockwerks's picture

Silver, if it's in the box at the bank, the bank owns it.

Crash Overide's picture

This smells like an NSA op conditioning the public to the coming "cyber war" they have been creating as an excuse to solidify their control of the internet and other narratives.

Banks are the finale... Problem, reaction, solution.

max2205's picture

Just like the EBT freeze...except no riots in Walmart

A Nanny Moose's picture

The irony being that "theives" can use bitcoin to buy your stolen CC#

I eagerly await the "synthesis."

tjeffersonsghost's picture

You are leaving out a pretty important fact, this only affects DEBIT cards and not CREDIT cards.  Pretty easy to know the answer why but if you need me to explain I will.

VD's picture

if u want ur capital controls, u can--    oh fuck it the USSA farce is just too fucking 'transparent' ...

Who Laughed's picture

That's Correct, 
-If you like your deposits, you can keep your deposits (more or less)

bania's picture

now if i can convince my wife to get one of these cards

TeamDepends's picture

The Zero Card, don't leave home without it!

DaveyJones's picture

or if I could just limit her shopping to Target

Millivanilli's picture

Wells Fargo limits cash withdrawals at $310.00.   I spoke with a rep who told me I wasn't allowed to increase it regardless of the need.   When I withdrew my cash and closed my account, they acted like i was in trouble with the law.


All banksters must hang!

Cookie's picture

I got rid of my last credit card in 1987, and dumped my last charge card in 2005. Yes, life is a tad tricky at times, but worth it.

Renewable Life's picture

First off, it WILLl be illegal to close your account and try to withdraw large amounts of cash, very shortly!!

Secondly, does anyone think this story is much bigger then what is being reported here? First no intl. wire transfers, now this shit!! TPTB must be preparing for some big disturbance in the force, coming very quickly!

If I had to guess, I would say something is gearing to go down in the South China Sea!! Which from a geopolitical standpoint, would make these adventures in the ME, look like kindergarten class!

Headbanger's picture

No shit!  This is all part of what I've said here numerous times that the big banks who OWN the Federal Reserve are protecting their ass now cause they clearly see the writing on the wall saying this country and the whole world if FUCKED really!  And there's nothing anyone can do about it.

Why do you think the big banks have been buying up all the real estate they can get?   Because they know the US dollar will soon be worthless and there simply isn't enough physical gold to buy without it going to $20 million an ounce. So they're buying up land and housing and farms. But the big problem with real estate is protecting it from the rioting hordes when the country fails. So they're glad to fund drones and armored vehicles and militarize the police forces to protect their real estate when the time comes.

This is also why there has been so much effort to centralize control of all police forces under a Federal agency so the Constitution can effectively be ignored.

Seem familiar??    Willkommen in der SS!!

Hope your goose step is in good form.

A Nanny Moose's picture

"...does anyone think this story is much bigger then what is being reported here?"

Sir, please avert your eyes. Do not gaze upon the individual behind the curtain. Please regard this nice strawman we have constructed, upon which we will permit you to cast your indignation.

That is all.

cbaba's picture

Yes, its all the banksters fault.

All cards in Europe, whether its a debit or credit card( any brand master, visa, amex, etc) issued from any bank,  there is a small chip inserted inside the card for security and you have to use a security password/pin number each time you do a transaction. These cards cannot be copied.

They haven't done this yet in US, why ? i don't think its a cost issue, they charge $30-$40 /yr card fees, its probably $1-$5 cost for the chip.There must be other reasons, either they charge fees to vendors, or they keep customers money in the bank by imposing such limits by this excuse...

one more reason to convict these corrupt banksters.

safe as milk's picture

i've heard that the reason that the u.s. hasn't gone to the chip thing is that they did some kind of a study and found that less people will use cards for transactions if it requires them to enter a pin. they will just pay with cash. they decided that it is better to have a higher incidence of fraud than lose business to other forms of payment that don't require a pin. i believe this is the same logic as to why you can now charge up to $50 without signing. another thing, i used to have a credit card with my picture on it to minimize the chance of someone using the card in person, if it was stolen. after a few years, they dicontinued the voluntary program. it seems to me there is a lot of low hanging security fruit that is being ignored by the bankster cartel in the hope that we'll all just go to pure credit/debit card payment system. boy these people hate cash transactions.

Hongcha's picture

Millivanilli - $310 withdrawal at the teller or at the ATM or both?

WeekendAtBernankes's picture

I don't know what happened to this guy but I once raised my Wells Fargo ATM withdrawal limit to $4500 over the phone, no problem, no questions asked. Only took about five minutes to make it happen.

l8apex's picture

You must be a hell of a bad credit risk.  WF starts everybody at a $300 withdrawal limit.  If you're a customer in good standing, all you have to do is ask for a higher limit and they'll give it to you.  So I had mine set at $600.


All of this other talk about capital controls...  Get over yourself already.  These limits only affect debit cards not credit cards.  

HoofHearted's picture

Are you kidding?

So you can run up costs on your credit cards? Great. And the USSA can keep track of everything you buy. When I'm in my second country of France, it is against the law, actually ILLEGAL to pay more than 800 euros for anything in cash. It must be traceable, either by check or by card. Keep the underground economy down.

I've got a different, regional bank. They allow me to take out $2000 per day out of ATMs. We've been stocking up on cash because of the writing on the wall. Now if it weren't for that terrible canoe trip, we might be able to buy all we need without Uncle Scam trying to keep track of us.

safe as milk's picture

i went to the teller in my local hsbc branch a few months ago and withdrew about $10k in cash. they went into a tizzy, got the manager and about 5 mins. later i got the cash with an admonition that if i wanted a large cash withdrawal, i should telephone the branch two days in advance. more recently, i withdrew $5k in cash and no one seemed to care. i think the thing to do, if you want to get your money out as cash, is to make a couple of $5k withdrawals per week. if you're in my economic bracket, then it won't take very long to close out the account without anyone noticing. the people at my hsbc branch are very sweet and helpful but let's face it they work for a criminal enterprise. i can't wait to get my money out of there.

WeekendAtBernankes's picture

There's a reason why your first transaction caused a "tizzy." 

Structuring your withdrawals to avoid a similar situation might result in attention from folks less sweet and helpful than the folks down at the HSBC.

Ironic considering HSBC was fined for laundering mucho grande quantities of drug dinero.

Seize Mars's picture


Capital controls.

The Gooch's picture

OT: Al Sharpton's "gun violence" townhall in Chicago backfires.


Urban Redneck's picture

Not necessarily.

In a JIT world, NO ONE keeps millions of pieces cardstock on hand to FedEx to customers (even if they were willing to swallow the expense, or sue Target for it).

So if JPM wanted to be PROACTIVE they would simply cancel 2 million debit cards the week before Christmas (and get around to issuing new cards to customers "whenever available or based on prioritization of the relatively minimal customer revenue from the 99%) and thereby eliminate the fraud risk and substitute it with Customer loss risk.

Things always appear simpler from the peanut gallery, but having been there I know I don't have enough FACTS yet to criticize their solution, other than that the entire INDUSTRY is at fault for not scaling their response capability in the face of ever increasing data breaches.

Winston Churchill's picture

The sheeple are being prepared for slaughter.

Mutton anyone ?

Kaiser Sousa's picture




JPM Hater001's picture

Funny how a destabilizing event occurs just in time for Christmas isnt it.  But of course all of this is just random hacking...

HoofHearted's picture

Happy 100th birthday to the US Fed!!!!

Seasmoke's picture

Hmmm. Sounds like a False Flag Operation. Blythe hacks Target and Jamie puts in capital controls.