Hackers targeting Target Corp. hit the bull's eye, but the nation's second largest discounter said it has resolved a security breach that gave cyber-criminals access to the credit and debit card information of some 40 million customers during the busiest shopping period of the year.
The U.S. Secret Service and state Attorney General Martha Coakley yesterday said they're investigating the breach — believed to be the second largest in U.S. history and which Reuters tied to hackers hitting Target's terminals that customers use to swipe the magnetic strips on their credit and debit cards.
The breach left vulnerable customer names, credit and debit card numbers, and the cards' expiration dates and security codes from purchases made Nov. 27 to Dec. 15 at Target's 1,700 U.S. stores.
"We have moved swiftly to address this issue, so guests can shop with confidence," CEO Gregg Steinhafel said in a statement.
Target said it notified authorities and financial institutions when it discovered the breach. But, citing the investigation, spokeswoman Katie Boylan declined to confirm how the information was accessed, when Target discovered the problem and how many customers already reported being victimized.
The breach is likely to get the attention of the Federal Trade Commission and class-action lawyers, said Chris Zoladz of Navigate LLC, a Maryland information protection and privacy advisory firm. "If this breach is as large as it has been reported to be, there had to be a fairly substantial failure in some internal control," he said.
In 2009, TJX Cos., the Framingham owner of T.J. Maxx and Marshalls, agreed to pay $9.75 million and implement a new data security program after a 2005-2006 data breach that affected at least 45.7 million card users.
The Target breach could deter consumers from shopping there in the tail-end of the holiday season.
"For those who shopped during that period, they may think twice about returning in the near-term," said analyst Joseph Feldman of New York's Telsey Advisory Group.
Target customer Heather Tinlin, a victim of credit theft 20 years ago, admitted to panicking and immediately checking her account. "It happens from time to time, knock on wood, you just have to be careful," she said yesterday at the Target in Dorchester.
Sara Lawson wasn't taking any chances. "I was a little nervous, and I will be paying cash today, just to be on the safe side," she said.
Andrew Blom contributed to this report.
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