Bank Warns of Identity Fraud Investigation

Employee May Have Released Commerce Bancorp Customer Data Linda McGlasson • November 16, 2007

Some customers of the New Jersey-based Commerce Bancorp have received notification from the bank that their identities may be compromised. The bank announced last Tuesday that an employee may have given out confidential customer information.

According to a Philadelphia television station NBC-10, Commerce sent letters to customers warning them that the employee had access to such personal information as names, addresses, account numbers and social security numbers. At least one customer at the Cherry Hill, NJ branch said they received the letter.

David Flaherty, a corporate communications spokesman for the Cherry Hill, NJ-based bank said only a "small segment" of its 3 million customers were affected. When contacted by Information Security Media Group for more information he said he had "nothing new to report" at the time.

Flaherty said the bank took immediate action to address the breach. The bank has launched an extensive internal investigation led by Commerce's corporate security team and notification to federal and state law enforcement officials. The bank said customers with the greatest potential of being impacted have been offered 12 months of credit monitoring service for free, with Commerce paying the cost. This goes beyond what state laws in New Jersey, Pennsylvania and Delaware require for breach notification.

Commerce's founder and CEO Vernon W. Hill II left the company in July after a probe was launched. Commerce Bancorp, with $50 billion in assets, is regulated by the Officer of the Comptroller of the Currency (OCC).

Earlier this year Commerce (NYSE:CBH) agreed to be sold to Toronto-based TD Bank Financial Group for $8.5 billion.