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Hackers give Target 40M holiday headaches

By Tiffany Hsu, Walter Hamilton and Chris O’Brien
Los Angeles Times
457902781
JOE RAEDLE - GETTY
Marie Rivage works the cash register at a Target store on Thursday, Dec. 19, 2013, in Miami, Fla. Target announced that about 40 million credit and debit card accounts of customers who made purchases by swiping their cards at terminals in its U.S. stores between Nov. 27 and Dec. 15 may have been stolen.

More Information

  • Customer info

    Target advised customers on 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.

    You can get more information about identity theft on the FTC’s website at www.consumer.gov/idtheft, or by calling the FTC, at 877-438-4338.

    Associated Press



As millions of bargain-crazed customers swarmed through Target stores on Black Friday, one of the most audacious heists in retail history was quietly underway.

A band of cyberthieves pilfered credit and debit card information from the giant retailer’s customers with pinpoint efficiency as shoppers bought discounted sweaters and electronic gear on the unofficial launch of the holiday shopping season.

By the time the scheme was discovered, the unidentified hackers had made off with financial data of 40 million Target customers over a 2 1/2-week period. It ranks as one of the nation’s biggest retail cybercrimes on record.

Target disclosed the security breach Thursday, saying the thieves had purloined customer names, card numbers and a security code encrypted in the magnetic strip. The theft enables the culprits to make phony credit cards, make fraudulent purchases or siphon money from bank accounts.

The data breach underscored the evolving sophistication of cybercriminals and the persistent vulnerability of retailers and consumers despite dozens of past incidents at major retailers.

“How do you get 40 million credit cards and no one knows about it?” said Ken Stasiak, chief executive of SecureState, which investigates cybercrimes.

The Minneapolis retailer said the hack occurred between Nov. 27, just before the annual holiday shopping frenzy, and Dec. 15. The breach affects people who bought goods at any of Target’s 1,797 stores nationwide, but not those who made purchases online.

In previous attacks against retailers, “skimmers” placed inside credit-card machines at checkout counters grabbed data from the cards’ magnetic stripes. Hackers have also targeted Wi-Fi networks that transmit data within stores.

The scope of the Target attack suggested that criminals might have gained access to encrypted customer information on a central database, security experts said.

“Whoever did this is pretty sophisticated – it’s most likely not some teenager sitting in his room,” said Peter Toren, a former prosecutor with the Department of Justice’s IP and Computer Crimes division.

Target didn’t give details about how the scheme may have been carried out. The Secret Service said it is investigating. Banks and credit card companies rushed to assure customers they would not be liable for any fraudulent transactions.

Customers who think they may be affected should scrutinize card statements and free online credit reports for suspicious behavior, experts said.

The Target fiasco could cost consumers $4.1 billion, almost all from potential debit card losses. Beyond that, victims collectively could spend as many as 131 million hours getting their accounts in order, according to Javelin Strategy & Research.

Now that Target and authorities are on to the scheme, the culprits are likely to rush to capitalize on the stolen information. Shoppers making massive last-minute Christmas purchases could get a nasty surprise.

“The shelf life of those cards is down to days,” said Alex Moss, managing partner at security firm Conventus. “If consumers’ data was compromised, they could find their card balances maxed out very quickly, and then they’re stuck until the investigation is over. That could put a huge portion of people in a tight spot, particularly during the holiday season.”

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