TranzactCard has suspended recruitment of new Digital Branch Owners. I believe this also affects referral of new “retail” card members.

As per a big clunky announcement on TranzactCard’s website…

…the stated reason for the suspension is preparation for “a complementary suite of products and services this coming week”.

Taken at face value this doesn’t hold up. An MLM company doesn’t need to disable recruitment/referral to add or remove products.

Even in a badly coded environment these are two distinct modules.

Given the vague “complementary suite” wording, I suspect TranzactCard is scrambling to offset ongoing delays due to undisclosed banking issues.

We’re now a month into 2024 and, after the Bangor Bank announcement in December 2023, there have been no further updates – just stalling.

I suspect overall TranzactCard recruitment/referral has tanked (there’s no point signing anyone up with nothing to show), but even then that doesn’t explain why recruitment/referral has been taken offline.

I suppose we’ll find out in the coming week whether the “complementary suite” and recruitment/referral are in fact related.

Another possibility is TranzactCard’s thus far undisclosed data breach. Earlier this week an individual or group of individuals claimed to have hacked details attached to ~32,000 TranzactCard accounts.

To the best of my knowledge this breach has yet to be disclosed to TranzactCard DBOs or members. As per the FTC, here’s what’s supposed to happen when a company learns of a data breach.

TranzactCard’s continued failure to publicly disclose its data breach and response plan, could result in a regulatory response.

Back in 2018 the SEC fined Altaba (formerly known as Yahoo!) $35 million for “failing to disclose [a] massive cybersecurity breach”.

Although it runs contrary to TranzactCard’s regulatory disclosure requirements, quietly trying to address the breach is more plausible for disabling recruitment/referral than the addition of products.

 

Update 4th February 2024 – TranzactCard has collapsed. On February 3rd it was announced the company is rebooting as FinMore.