DUBUQUE--Someone secretly tapped into thousands of credit and debit card files, and now they're on a spending spree. The money is coming from the accounts of thousands of people in Dubuque and possibly around the nation.

Dubuque's banks and credit unions are cancelling debit cards left and right.

Dutrac Community Credit Union’s, Alan Schuester said, "We block the card, re-issue a new card and send that to the card holder."

The banks reimburse customer's accounts for any fraudulent charges.
Police say it all happened when someone got access to a local merchants credit card files, and started charging away.

Schuester said, "We don't know where Mastercard and Visa will not tell us in fact they never will tell us."

Dubuque police are trying to pin-point the exact merchant.

Investigators believe the fraud could be happening all over the United States.

Card holders whose cards have been de-activated can still buy things and use the A.T.M. by using their pin number. But they are not allowed to sign for their purchases.

Schuester said, "right now the fraud based potential is in the signature base transactions or that they've got a hold of any pin numbers."

It is even affecting bank employee’s accounts.

Schuester said, "oh yeah, I found out my card and my son's card is on the list so therefore I’m using at only A.T.M’s right now."

Meanwhile the banks and credit unions don't know yet how many people are victims here.

And they say it will take days, even weeks for that information to surface.