Target says data breach possibly affected millions of credit cards

http://www.theguardian.com/business/2013/dec/19/target-breach-credit-card-accounts

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US retail chain Target says that about 40m credit and debit card accounts may have been affected by a data breach that occurred just as the holiday shopping season shifted into high gear.

The chain said that accounts of customers who made purchases using their cards at its US stores between 27 November and 15 December may have been exposed. The stolen data includes customer names, credit and debit card numbers, card expiration dates and the three-digit security codes located on the backs of cards.

The Minneapolis company said it immediately told authorities and financial institutions once it became aware of the breach and that it is teaming with a third-party forensics firm to investigate the matter and prevent future breaches. It said it is putting all "appropriate resources" toward the issue.

Target Corp advised customers to check their statements carefully. Those who suspect there has been unauthorized activity on their 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 didn't say exactly how the data breach occurred, but said it had since fixed the problem and that credit card holders can continue shopping at its stores. But news of the breach comes at the height of the holiday shopping season and threatens to scare away shoppers, who may be worried about the safety of their personal data.

Target is just the latest retailer to be hit with a data breach problem. TJX Cos, which runs stores such as TJ Maxx and Marshall's, had a breach that began in July 2005 that exposed at least 45.7m credit and debit cards to possible fraud. The breach wasn't detected until December 2006. In June 2009 TJX agreed to pay $9.75m in a settlement with multiple states related to the massive data theft but stressed at the time that it firmly believed it did not violate any consumer protection or data security laws.

An even larger hack hit Sony in 2011. It had to rebuild trust among PlayStation Network gamers after hackers compromised personal information including credit card data on more than 100m user accounts. Sony was criticized for slowness in alerting users to the breach.

"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. We regret any inconvenience this may cause," chairman, president and CEO Gregg Steinhafel said in a statement Thursday.

Target has 1,797 U.S. stores and 124 in Canada.

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