WHITMAN, MA, ISSUED JANUARY 18, 2007…Approximately 1000 debit cards issued by Mutual Bank are being de-activated after bank officials were informed by VISA USA that a “large scale data compromise” could possibly have included these cards. Mutual Bank is one of a large number of banks in the area and nationally that is potentially affected.

As soon as Mutual Bank was notified of the possible breach, the bank took the immediate step of initiating personal phone calls to each credit card holder to inform them of the steps that the bank is taking.

Glen S. White, CEO of Mutual Bank, said “We are fortunate in that, as a small community bank, we can talk with our customers and get this information to them quickly. We would rather take this step of re-issuing cards than take a chance on even one breach of security.”

 White said that the potential problem did not originate within Mutual Bank, but with a large, U.S.-based retailer. News reports which aired today have listed TJX as the retailer reporting the possible data compromise. “Visa has notified a number of Massachusetts banks that a specific retailer had a problem with some of its customer data. We have seen no evidence to date of any actual fraudulent activity on customer accounts related to this event.  However, we take these matters very seriously.”

Accordingly, the bank is taking the step of de-activating all affected cards and will re-issue new cards to their customers. The bank will assume all costs of de-activating existing cards and re-issuing new ones, anticipated at more than $2,000. Additionally, White noted, Mutual Bank Visa Check Card holders are protected against loss from fraudulent purchases with the bank's participation in the Visa Zero Liability Protection Policy.

He said, “While replacing the card puts the customers to some inconvenience to reactivate a new card, and we certainly apologize for this inconvenience, our initial response from customers is that they are more than happy to do so, and appreciate the measures we are taking to keep them informed and keep their accounts secure.”

He continued, “Early detection by the customer is the best defense against fraud.  We can't emphasize enough how important it is for banking customers to carefully monitor all of their banking statements and report any suspicious activity. We offer online banking service for free to all our customers, so they have 24/7, real-time access to their account activity and can spot problems at the onset.”

When cardholders receive their new cards, they may activate them by following instructions that will arrive with the cards.

Currently, Visa USA officials are working with law enforcement and the retailer to investigate the compromise of credit card account information. According to Visa officials, Visa is collecting information on all affected accounts and will provide this information to card issuers as soon as possible.

For any specific questions regarding the Mutual Bank Visa Check Card replacement, please call 781-447-4488.