Debit Card Scam Linked to Crafts Store

Shopped at Michaels Arts and Crafts lately and paid using a credit or debit card? If so, you're going to want to monitor your billing statements over the next couple of months.

Last week the popular arts and crafts retailer announced that a number of the stores' PIN Pad machines, which are used to record a debit card transaction, had been tampered with and may have been used to steal customer's debit card PIN numbers from February 8-May 6.

The company also noted that while there have been no reports of credit card fraud, it is possible that customers' credit card data could have been stolen as well.

An updated release by the company indicated that the Michaels retailer located at 410 Route 10 West in East Hanover (just across the Livingston border) is among the nearly 90 stores that may have been using the tampered machines inadvertently. To date, fewer than 100 debit card PIN numbers have been compromised and used for fraudulent purchases nationwide.

Michaels CEO John Menzer apologized on behalf of the company in a press release. "We want to express how deeply we regret any issues experienced by our loyal customers who have been affected in any way, and thank all our customers for their support."

Customers, who notice unauthorized charges are urged to contact their credit card company immediately. Nearly all card issuers including Mastercard, Visa and Discover, offer dedicated lines for customers to call into to report stolen cards and have them reissued with new numbers. 

Since the revelation, the company, which operates 1,045 stores in 49 states and Canada, has removed over 7,000 PIN pads as a precaution from its locations nationwide to avoid having other customers' data compromised. The company is also working with law enforcement to determine who is behind the crime but so far no arrests have been made.

Despite the breach, company officials are confident that they have isolated the problem. "We are confident that Michaels stores are a safe place to shop", said Menzer.

Below is a list of all of the affected Michaels locations in New Jersey: