Target: Justice Dept. investigates its data breach

[Omaha Steve]

Source: AP-Excite

By ANNE D'INNOCENZIO

NEW YORK (AP) - Target Corp. (TGT) said Monday that the Department of Justice is investigating the credit and debit card security breach at the retailer.

The investigation comes after Target revealed last week that data connected to about 40 million credit and debit card accounts were stolen between Nov. 27 and Dec. 15. Security experts say it's the second-largest theft of card accounts in U.S. history, surpassed only by a scam that began in 2005 involving retailer TJX Cos. That affected at least 45.7 million card users.

The Department of Justice declined to comment on whether it's investigating the breach at Target, the nation's second-largest discounter. But Target said that it's cooperating with the DOJ's probe.

The news came as Target also said that it is working with the U.S. Secret Service in the retailer's own investigation and that its general counsel held a conference call on Monday with state attorneys general to bring them up to date on the breach.

FULL story at link.


Read more: http://apnews.excite.com/article/20131224/DAASDMKG0.html

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This Dec. 19, 2013, photo shows a Target store near Target headquarters in Minneapolis. Target says that about 40 million credit and debit card accounts customers may have been affected by a data breach that occurred at its U.S. stores between Nov. 27 and Dec. 15. (AP Photo/The Star Tribune, Glen Stubbe) MANDATORY CREDIT; ST. PAUL PIONEER PRESS OUT; MAGS OUT; TWIN CITIES TV OUT

[Sherman A1]

1. Until the banks

decide to change the format of the cards themselves, I believe this will continue to be a growing problem.

[Kablooie]

2. I read it's just a cost of doing business.

The cost of upgrading the credit card system is more then the losses they take from fraud.
At least for now.
So we still use 1960s technology, magnetic strips and signatures, while the rest of the world has upgraded to computer chips.

At least the customers don't absorb the loss but they do get the inconvenience of replacing their card.

[Thor_MN]

4. "At least the customers don't absorb the loss"

Sure they do, the cost of the loses gets added into future prices.

[htuttle]

3. I thought that the Treasury Dept/Secret Service was in charge of investigating wire fraud?

on edit:

Oh duh. It says the Secret Service, doesn't it.

[groundloop]

5. Haven't had enough coffeee yet, huh?

[MicaelS]

6. Maybe it was an inside job...

Or had inside help.

[Sherman A1]

7. Wouldn't be surprised

[Jesus Malverde]

8. Exclusive: Target hackers stole encrypted bank PINs - source

The hackers who attacked Target Corp and compromised up to 40 million credit cards and debit cards also managed to steal encrypted personal identification numbers (PINs), according to a senior payments executive familiar with the situation.

One major U.S. bank fears that the thieves would be able to crack the encryption code and make fraudulent withdrawals from consumer bank accounts, said the executive, who spoke on the condition of anonymity because the data breach is still under investigation.

Target spokeswoman Molly Snyder said "no unencrypted PIN data was accessed" and there was no evidence that PIN data has been "compromised." She confirmed that some "encrypted data" was stolen, but declined to say if that included encrypted PINs.

"We continue to have no reason to believe that PIN data, whether encrypted or unencrypted, was compromised. And we have not been made aware of any such issue in communications with financial institutions to date," Snyder said by email. "We are very early in an ongoing forensic and criminal investigation."

The No. 3 U.S. retailer said last week that hackers stole data from as many as 40 million cards used at Target stores during the first three weeks of the holiday shopping season, making it the second-largest data breach in U.S. retail history.

Target has not said how its systems were compromised, though it described the operation as "sophisticated." The U.S. Secret Service and the Justice Department are investigating. Officials with both agencies have declined comment on the investigations.

The attack could end up costing hundreds of millions of dollars, but it is unclear so far who will bear the expense.

http://uk.reuters.com/article/2013/12/24/uk-target-databreach-exclusive-idUKBRE9BN0L420131224