Boston, MA 01/22/2014 (wallstreetpr) – JPMorgan Chase & Co. (NYSE:JPM) has announced that it is sending new cards to millions of its customers in the wake of cyberattacks which left customer accounts vulnerable. Several other banks like Bank of America Corp (NYSE:BAC), Wells Fargo & Co. (NYSE:WFC) and Citibank have also announced reissuance of new credit and debit cards.
The said cyberattacks are linked to the over the holiday security breach that was noted in stores including Neiman Marcus and Target Corporation (NYSE:TGT). During the holiday cyberattack, about 110 million Target customers were affected. Many other stores were also infiltrated in the hacking and it is reported that some stores may still not be aware that they were hacked.
In order to mitigate the impact of the security breach and to forestall future attacks, JPMorgan Chase & Co. (NYSE:JPM) announced issuing of more than 2 million new cards to customers. And before this exercise is concluded, the bank has imposed withdrawal and purchase caps on its cards to between $100 and $300 a day.
Cyberfaud experts are still at loss regarding the source of the attack. However, report that part of the code used in the cyberattack was written in Russian has turned attention to Russia as the possible source of the attack.
JPMorgan performance
JPMorgan Chase & Co. (NYSE:JPM) released its fourth quarter results last week. The bank, the largest by assets in the U.S., posted profit of $5.28 billion or $1.30 per share for Q4.13. These results showed weakening position in the bank given that in a year ago quarter its net profit was $5.69 billion or $1.39 per share.
The clearly lackluster performance of the bank was contributed to by the costly legal settlements which came its way in the quarter. The bank is dogged by cases touching on irregular mortgage transactions, currency manipulation and failure to stop the illegal Ponzi scheme ran by Bernard Madoff.
Return to profitability
At the moment banks are fighting for market share in order to boost their revenue and profit. This being the case, JPMorgan Chase & Co. (NYSE:JPM) is hoping that taking early steps to ensure the security of its customers in the wake of the cyberattack will win it customer confidence which is important for its speedy march to profitability.
