Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News

 

Target security breach affects up to 40M cards

Dec 20 2013, 8:36am CST | by

10 Updates
 
 

Comments

Full Story

Target security breach affects up to 40M cards

Up to 40M shoppers may have had credit and debit cards compromised in Target security breach

Target's data-security nightmare threatens to drive off holiday shoppers during the company's busiest time of year.

The nation's second-largest discounter acknowledged Thursday that data connected to about 40 million credit and debit card accounts was stolen as part of a breach that began over the Thanksgiving weekend.

The theft marks the second-largest credit card breach in U.S. history, exceeded only by a scam that began in 2005 involving retailer TJX Cos. and affected at least 45.7 million card users.

Target's disclosure came a day after reports that the company was investigating a breach.

Customers who made purchases by swiping their cards at its U.S. stores between Nov. 27 and Dec. 15 may have had their accounts exposed. The stolen data included customer names, credit and debit card numbers, card expiration dates and the embedded code on the magnetic strip on back of the card, Target said.

There was no indication that the three- or four-digit security numbers visible on the back of the card were affected.

The data breach did not affect online purchases, the company said.

Target has not disclosed exactly how the breach occurred but said it has fixed the problem.

Large companies spend millions of dollars each year on credit-card security measures. Given the company's heavy security, the theft may have been an inside job, said Avivah Litan, a security analyst with Gartner Research.

"The fact this breach can happen with all of their security in place is really alarming," Litan said.

Jason Oxman, CEO of the Electronics Transaction Association, which represents the payments technology industry, said past data breaches have been "heavily organized and sophisticated."

Last year, global credit and debit card fraud losses reached $11.27 billion, up 11. 4 percent over the previous year, according to The Nilson Report, which tracks global payments. And while credit and debit card fraud has been on the rise, it's because the overall payment industry has expanded. In fact, Nilson's publisher David Robertson said credit and debit card fraud still accounts for less than 6 cents of every $100 spent.

Target, which has almost 1,800 stores in the U.S. and 124 in Canada, said it immediately told authorities and financial institutions once it became aware of the breach on Dec. 15. The company is teaming with a third-party forensics firm to investigate and prevent future problems.

The credit card breach poses a serious problem and threatens to scare away shoppers who worry about the safety of their personal data.

"This is close to the worst time to have it happen," said Jeremy Robinson-Leon, a principal at Group Gordon, a corporate and crisis public relations firm. "If I am a Target customer, I think I would be much more likely to go to a competitor over the next few days, rather than risk the potential to have my information be compromised."

Target advised customers Thursday to check their statements carefully. Those who see suspicious charges on the cards should report it to their credit card companies and call Target at 866-852-8680. Cases of identity theft can also be reported to law enforcement or the Federal Trade Commission.

"Target's first priority is preserving the trust of our guests, and we have moved swiftly to address this issue, so guests can shop with confidence," Chairman, President and CEO Gregg Steinhafel said Thursday in a statement.

Many displeased customers left angry comments on the company's Facebook page. Some threatened to stop shopping at the store. Many complained they could not get through to the call center and could not get on Target's branded credit card website. The company apologized and said it was "working hard" to resolve the issue and adding more workers to field calls and fix website issues.

Christopher Browning, of Chesterfield, Va., said he was the victim of credit card fraud earlier this week and believes it was tied to a purchase he made at Target with his Visa card on Black Friday. When he called Visa on Thursday, the card issuer could not confirm his suspicions. He said he has not been able to get through to Target's call center.

On Monday, Browning received a call from his bank's anti-fraud unit saying that there were two attempts to use his credit card in California — one at a casino in Tracey, Calif., for $8,000 and the other at a casino in Pacheco, for $3,000. Both occurred on Sunday and both were denied. He canceled his credit card and plans to use cash.

"I won't shop at Target again until the people behind this theft are caught or the reasons for the breach are identified and fixed," he said.

Brianna Byrnes, of Kansas City, Mo., a student at the University of Missouri-Kansas City and a call center worker, said she made a Target purchase during the affected period. The situation made her "a little bit" nervous, but she still planned to shop for toys at the store.

"I've never had anyone steal my identity. I guess it's taking a risk."

Target's stock dropped more than 2 percent, or $1.40, to $62.15 on Thursday.

The incident is particularly troublesome for Target because it has used its store-branded credit and debit cards as a marketing tool to attract shoppers with a 5 percent discount.

During an earnings call in November, the company said some 20 percent of store customers as of October have the Target-branded cards. In fact, households that activate a Target-branded card have increased their spending at the store by about 50 percent on average, the company said.

"This is how Target is getting more customers in the stores," said Brian Sozzi, CEO and Chief Equities Strategist. "It's telling people to use the card. It's been a big win. If they lose that trust, that person goes to Wal-Mart."

TJX Cos., which runs stores such as T.J. Maxx and Marshall's, had a breach that began in July 2005 and exposed at least 45.7 million credit and debit cards to possible fraud. The breach was not detected until December 2006.

Without anyone noticing, one or more intruders installed code on the discount retailer's systems to methodically collect and transmit account data from millions of cards.

In 2009, TJX agreed to pay $9.75 million in a settlement with multiple states.

In 2011, an even larger hack hit Sony, which had to rebuild trust among PlayStation Network gamers after hackers compromised personal information, including credit card data, on more than 100 million user accounts.

Litan doubts the breach will have much effect on Target's sales, noting that TJX launched sales promotions immediately following the news of its breach. The promotions increased sales.

"People care more about discounts than security," Litan said.

___

Associated Press writers Michelle Chapman in New York and Heather Hollingsworth in Kansas City, Mo., contributed to this report.

Source: AP

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update

Update: 10

4 Firms In Iskandar Malaysia Get Facilitation Fund Totalling RM16.2 Million

Source: Malaysia Today

(Bernama) – Four companies have received the facilitation fund amounting to RM16.2 million from TERAJU@Iskandar Malaysia in an information sharing programme on business opportunities and assistance for the small and... READ MORE ...
Source: Malaysia Today   Full article at: Malaysia Today 4 days ago, 7:42am CDT
 


Advertisement


Update: 9

Selangor’s Watergate about to explode

Source: Malaysia Today

Anwar brought Wan Azmi to meet Khalid to try to resolve this matter. Anwar supports the RM2.5 billion claim but Khalid is stubbornly sticking to the figure of RM250 million.... REA ...
Source: Malaysia Today   Full article at: Malaysia Today 5 days ago, 4:12am CDT
 

More From the Web

Update: 8

GLCs told to provide RM7 billion to develop Bumiputera firms

Source: Malaysia Today

(The Malaysian Insider) – Putrajaya has directed government-linked companies (GLC) to generate RM7 billion in business opportunities for Bumiputera firms this year, Prime Minister Prime ...
Source: Malaysia Today   Full article at: Malaysia Today Jul 17 2014, 2:05am CDT
 

Update: 7

Rafizi shows proof of Putrajaya’s hand in contentious carpet-trader loan

Source: Malaysia Today

Eileen Ng, The Malaysian Insider PKR lawmaker Rafizi Ramli today revealed documents to prove Putrajaya interfered in the RM32 million Bank Rakyat loan to ‎controversial businessman Deepa ...
Source: Malaysia Today   Full article at: Malaysia Today Jul 16 2014, 2:16am CDT
 

Update: 6

PAS MP claims Bank Rakyat loaned carpet-trader RM215m, interest free

Source: Malaysia Today

(Malay Mail Online) – Controversial businessman Deepak Jaikishan (pic) was given a whopping RM215 million interest-free loan from state-owned Bank Rakyat, a PAS lawmaker alleged today, despite Putrajaya’s claims ot ...
Source: Malaysia Today   Full article at: Malaysia Today Jul 14 2014, 5:52am CDT
 

Update: 5

MRCB, Nusa Gapurna and PKNS settle suit over RM3 billion PJ Sentral project

Source: Malaysia Today

(The Malaysian Insider) – Malaysian Resources Corp Bhd (MRCB), Nusa Gapurna Development Sdn Bhd (NGD) and PKNS Holdings Sdn Bhd have reached an out-of-court settlement over the ownership of the... READ ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 21 2014, 2:53am CDT
 

Update: 4

Story behind Syed Mokhtar’s ‘RM2.25 billion tax-exempt’ Bernas deal revealed, says PKR MP

Source: Malaysia Today

(The Malaysian Insider) – An innocuous written reply in Parliament has provided a peek into the cosy relationship between the Najib administration and Malaysia’s best-known businessman, Tan Sri Syed Mokhtar... READ MORE ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 15 2014, 12:56pm CDT
 

Update: 3

Constitutional monarchy still murky concept

Source: Malaysia Today

After the RM4.5 billion land sale, the Sultan of Johor secured a 15% stake in MOL Access Portal (MOL) for RM396 million and took a 20% stake in Berjaya Times ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 14 2014, 12:37am CDT
 

Update: 2

Sultan of Johor’s RM4.5 bil backlash?

Source: Malaysia Today

Has Sultan Ibrahim of Johor’s succession of big money deals over the last six months caused the tide of public opinion to turn against Johor’s royal palace? KiniBiz examines the... ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 11 2014, 8:49am CDT
 

Update: 1

Putrajaya denies carpet dealer given interest-free loan

Source: Malaysia Today

Eileen Ng, The Malaysian Insider Putrajaya today refuted allegations that Bank Rakyat had allowed carpet dealer Deepak Jaikishan to repay a RM32 million loan without interest following interv ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 11 2014, 5:44am CDT
 

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/30" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

 

Comments

blog comments powered by Disqus

Latest stories

iPhone 6 will not have Sapphire Cover Glass
iPhone 6 will not have Sapphire Cover Glass
New supply chain analysis suggest that there will be no Sapphire Cover Glass on the iPhone 6.
 
 
Philadelphia Phillies Release Tony Gwynn, Jr.
Philadelphia Phillies Release Tony Gwynn, Jr.
The Philadelphia Phillies released outfielder Tony Gwynn, Jr., the son of the late San Diego Padres legend, on July 28.
 
 
The Best CosPlay Comic-Con 2014 Photos
The Best CosPlay Comic-Con 2014 Photos
Comic-Con 2014 is over and had a huge line-up of celebrities, but the real stars are the fans doing cosplay. See below the best CosPlay Comic-Con 2014 photos.
 
 
New Wonder Woman is Hot
New Wonder Woman is Hot
On the weekend Zack Snyder revealed the look of the new Wonder Woman set to appear in the movie Batman vs. Superman. Gal Gadot looks hot and dangerous. Not everyone agrees with the changes.
 
 
 

About the Geek Mind


Read more about The Geek Mind.