December 19th, 2013
10:40 AM ET

Target: 40 Million Credit Cards Compromised

A breach of credit and debit card data at discount retailer Target may have affected as many as 40 million shoppers who went to the store in the three weeks after Thanksgiving, the retailer said Thursday. CNN's Christine Romans reports.

Late Wednesday, the Secret Service, which is charged with safeguarding the nation's financial infrastructure and payment systems, confirmed it was investigating the breach.

Spokesman Brian Leary declined further comment.

The breach first came to light via a report from respected security researcher Brian Krebs, who said Target had suffered a data breach around the time of Black Friday last month "potentially involving millions of customer credit and debit card records."

Target (TGTFortune 500), the nation's No. 2 general merchandise retailer after Wal-Mart Stores (WMTFortune 500), said cards used at the brick-and-mortar stores between Nov. 27 and Dec. 15, 2013, may have been impacted.

The retailer said it notified authorities and financial institutions immediately after it was made aware of the unauthorized access, and had hired a forensics team to thoroughly investigate how the breach may have happened.

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

The thieves reportedly gained access to data on the magnetic strips of shoppers' cards, potentially allowing them to produce counterfeit versions, according to Krebs.

The thieves could also potentially withdraw cash from ATMs using counterfeit debit cards if they were able to intercept PIN data from Target, he said.

American Express (AXPFortune 500) and Discover (DFSFortune 500) both said they were "aware" of the incident and had fraud controls in place.

"This is an ongoing investigation," an AmEx spokeswoman said, declining to comment further.

MasterCard (MAFortune 500) referred questions to Target; Visa (VFortune 500)did not respond to requests for comment.

Posted by
Filed under: moneytime • News • Videos
soundoff (No Responses)

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.