Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Business Intelligence Sales & Marketing More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
CIO Issues
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Target Data Breach Pits Banks Against Retailers
Target Data Breach Pits Banks Against Retailers

 
February 7, 2014 9:34AM

Bookmark and Share
The Target theft could prove to be the biggest data breach on record for a U.S. retailer. Now, retailers and banks are pointing fingers at each other. Retailers say banks must upgrade the security technology for the credit and debit cards they issue. Banks say newer electronic-chip technology wouldn't have prevented the Target breach.
 


Banks and America's big retailers are locked in a debate over the massive breach of millions of consumers' data that gripped Target Corp. during the holiday season. At issue: Which industry bears more responsibility for protecting consumers' personal information?

The retailers' argument: Banks must upgrade the security technology for the credit and debit cards they issue. The banks' counterargument: Newer electronic-chip technology wouldn't have prevented the Target breach. And retailers must tighten their own security systems for processing card payments.

An estimated 40 million credit and debit card accounts were affected by the Target breach, which occurred between Nov. 27 and Dec. 15. Stolen were customers' names, credit and debit card numbers, card expiration dates, debit-card personal identification numbers and the embedded codes on the cards' magnetic strips.

Also stolen was non-card personal information -- names, phone numbers and email and mailing addresses -- for up to 70 million Target customers who could have shopped before or after the Nov. 27-Dec. 15 period.

The Target theft could prove to be the biggest data breach on record for a U.S. retailer. Minneapolis-based Target, the No. 2 U.S. discounter, has acknowledged that news of the breach has scared some shoppers away. The company last month cut its earnings outlook for its fourth quarter, which covers the crucial holiday season. It warned that sales would be down for the period.

The two industries are pointing fingers at each other. Each has considerable lobbying might. Their trade groups have been bombarding lawmakers with letters arguing why the other industry must do more -- and spend more -- to protect consumers.

"Nearly every retailer security breach in recent memory has revealed some violation of industry security agreements," the Independent Community Bankers argued last month. "In some cases, retailers haven't even had technology in place to alert them to the breach intrusion, and third parties like banks have had to notify the retailers that their information has been compromised."

The National Retail Federation has fired back:

Retailers must accept "fraud-prone cards" issued by banks that are attractive to thieves, the federation's general counsel testified at a Senate subcommittee hearing Monday. "Unlike the rest of the world, the U.S. cards still use a signature and magnetic stripe for authentication."

Their antagonism aside, the two sides agree on one point: That Congress should create a national standard for notifying consumers of any data breaches. A uniform standard would replace the current hodgepodge of state guidelines. (continued...)

1  |  2  |  Next Page >

 


© 2014 Associated Press under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:

Ryan K:

Posted: 2014-02-11 @ 9:07am PT
@Ken D: That would be nice!

Ken D.:

Posted: 2014-02-11 @ 9:06am PT
Here's a novel idea...
How about the retailers and the banks *work together* to come up with sound security measures?



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 CIO Issues
1.   Target Hackers May Be Tough To Find
2.   OpenSSL Calls for More Support
3.   Heartbleed Flaw Affects Hardware
4.   Is a Web Site Safe from Heartbleed?
5.   States Probing Massive Data Breach


advertisement
Internet Devices Lure Hackers
Mundane devices end up in online crime.
Average Rating:
Target Hackers May Be Tough To Find
Difficult challenges for Secret Service.
Average Rating:
Heartbleed Flaw Affects Hardware
Cisco, Juniper equipment vulnerable.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Verizon Data Breach Report Exposes Top Threats
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
White House Updating Online Privacy Policy
A new Obama administration privacy policy explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites, saying much is in the public domain.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Business Intelligence | Sales & Marketing | Contact Centers | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.