New Safe-Deposit Boxes Have Greater Security Risk

Charlotte Observer, 07/23/2005

By Andrew Shain

The latest bank security glitch is very low tech.

Roughly 140,000 new safe-deposit boxes nationwide have locks at greater risk of being opened with keys belonging to other customers at the same bank branch. They include boxes at the new Bank of America branch on Kings Drive in Charlotte.

A little more than half of the boxes have been fixed.

"There are boxes out that are still vulnerable; that's ridiculous," said Jim Stickley, a vice president at security firm TraceSecurity Inc. "This is where people put their most valuable of valuable things."

The key mishap is another security woe for banks, which along with other companies, have revealed in recent months some of their customer data were stolen or missing from data tapes and computers.

The latest problem was discovered more than two months ago when a customer at an undisclosed Georgia bank accidentally opened a nearby deposit box, said Randy Benore, director of product management for box maker Diebold Inc.

A supplier who worked on boxes installed since late last year did not "randomize" keys adequately to prevent customers at the same bank from opening other deposit boxes, Benore said. The glitch increased the odds of having a bank branch where a key could open multiple deposit boxes from 1 in 2,500 to about 1 in 20, he said.

Company officials have notified banks and are paying to re-key boxes. Bank of America and Wachovia, both based in Charlotte, are asking customers to come to branches this month to get new keys.

Diebold should have made a public announcement soon after the problem was discovered so customers could act more quickly, Stickley said. Companies have revealed recent security data breaches, in part, because of a California law that require notifying customers. The Carolinas are considering similar laws.

Diebold declined to say how many branches or customers were using the boxes, but said locks are being changed for 200 banks. Spokeswomen at Bank of America and Wachovia did not know how many branches or customers were affected.

Are You Affected?

Problem safe-deposit boxes were installed at bank branches opened since late last year. Customers with questions should call their bank, box maker Diebold Inc. said.

http://www.charlotte.com/mld/observer/news/local/12204286.htm