NEW YORK (AP) — Shares of payment processor Global Payments Inc. fell Wednesday after the company said hackers may have accessed more personal data about customers than the company initially believed.
THE SPARK: On Tuesday, the company said hackers may have accessed computer that stored personal information from merchants who were applying to have their sales processed by Global Payments. That data included names, addresses, Social Security numbers, drivers' license numbers and bank account information.
Earlier this year, the company said hackers may have taken data from as many as 1.5 million credit and debit accounts, but it said personal information like names had not been taken. Personal information like names and addresses and account information are both needed in order to get credit cards under stolen identities.
THE BIG PICTURE: The Atlanta company said it doesn't think any personal information was taken, and the data that was viewed appears to be mostly account numbers, expiration dates, and security codes. However it said it has notified the accounts that may be affected by the breach and will notify people whose accounts may have been compromised.
Global Payments said it will have more information on the cost of the hack July 26. It said it is not aware of any fraudulent charges related to the breach.
THE ANALYSIS: Robert W. Baird & Co. analyst David Koenig said the news that some merchants were affected could hurt Global Payments, but he thinks the security breach won't cost the company more than $30 million.
Sterne Agee analyst Greg Smith said the update was "disappointing" but he believes the company will be able to recover. He said Global Payments is facing tens of millions of dollars in financial damages.
Both analysts maintained "Buy"-equivalent ratings on the stock.
SHARE ACTION: Global Payments shares declined $1.04, or 2.5 percent, to $41.15 in afternoon trading. The stock is down about 19 percent since the company disclosed the security breach on March 30.
