Target reports 40M card accounts may be breached

Target reports 40M card accounts may be breached

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by Associated Press

kgw.com

Posted on December 19, 2013 at 7:03 AM

Updated Thursday, Dec 19 at 1:37 PM

MINNEAPOLIS (AP) — Target says that about 40 million 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 U.S. stores between Nov. 27 and Dec. 15 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.

On Thursday many Target shoppers in Beaverton were using cash. “I pulled out cash from my bank instead of paying with my card,” said Target shopper Zach Allen.

One Beaverton woman named Kristine said she was a victim of the rash of stolen credit card numbers. She did not want her last name used.

“I was just checking our balance and then saw that there was more than I thought: video games and a snowboard. So like $500,” Kristine said.

She is a regular at Target, but not a snowboarder. Her credit card company canceled the charges, but she's changing her practices too.

“I'm going to be checking them probably every day for awhile until I feel more comfortable again,” Kristine said.

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 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 worried about the safety of their personal data.

“Everybody and their brother goes to Target," said Beaverton shopper Steven Trask."I did for the grand kids for gift cards. So I freaked out about all these hackers.”

Thursday morning he moved his money into a savings account.

“It was the Target thing entirely,” Trask said. “There are better odds of them getting into your account and getting some money than the lottery.”

Some experts say it's even a good idea to cut up your cards every six months and get new ones.

Target is just the latest retailer to be hit with a data breach problem. TJX Cos., which runs stores such as T.J. Maxx and Marshall's, had a breach that began in July 2005 that exposed at least 45.7 million credit and debit cards to possible fraud. The breach wasn't detected until December 2006. In June 2009 TJX agreed to pay $9.75 million 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 100 million 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.

 

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