27 June 2017
Visit cib.db.com

Hacked Target hastens migration to chip cards

05 February 2014  |  6565 views  |  0 card chip

Target has promised to accelerate its $100 million programme to roll out smart card technology in stores to help guard against further fraud.

In testimony before the Senate Committee on the Judiciary, the retailer's CFO, John Mulligan, said that all proprietary REDcards and all store card readers will be equipped with chip-enabled technology by the first quarter of 2015, six months earlier than initially planned.

Mulligan was appearing before the Committee following a massive data breach at Target late last year which saw thieves use a vendor's credentials to infect POS devices with malware and steal the details of around 40 million customer cards and the personal information of 70 million people.

Mulligan appeared at the hearing alongside Michael Kingston, CIO at Neiman Marcus Group, another retailer hit by hackers who said that the malware which hit his firm's systems had a "zero per cent detection rate" by antivirus software.

The hearing largely focused on plans for the US to ditch mag-stripe technology in favour of more secure EMV chip cards.

In 2012 Visa, MasterCard, Discover and American Express finally sought to bring the US in line with Europe, setting out a roadmap for the switch. Under this roadmap, liability for fraud-related loses will switch to retailers that have not upgraded their hardware in October 2015.

However, in light of the recent high-profile breaches, Senators called on other retailers to follow Target's lead and roll out EMV chip technology in their stores as quickly as possible.

Operating under the tightest of margins in a fiercely competitive sector, retailers typically spend just four percent of their technology budgets on security, compared with 5.5% for banks and 5.6% for healthcare companies, according to technology research firm Gartner.

IDC Retail Insights expects spending by US retailers in 2014 specifically for security in the United States to reach $720.3 million, an increase of 5.7% from last year in part because of the recent breaches.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Neiman Marcus says 1.1 million cards compromised; Michaels Stores latest to report breach

Neiman Marcus says 1.1 million cards compromised; Michaels Stores latest to report breach

27 January 2014  |  5619 views  |  0 comments | 8 tweets | 5 linkedin
Texas police make Target data breach-related arrests

Texas police make Target data breach-related arrests

21 January 2014  |  3847 views  |  0 comments | 1 linkedin
Russian teen accused of writing Target malware

Russian teen accused of writing Target malware

20 January 2014  |  6225 views  |  4 comments | 8 tweets | 10 linkedin
Citi replaces all debit cards involved in Target breach

Citi replaces all debit cards involved in Target breach

16 January 2014  |  6092 views  |  0 comments | 7 tweets | 7 linkedin
Target hackers used POS malware to steal card details

Target hackers used POS malware to steal card details

14 January 2014  |  6905 views  |  0 comments | 5 tweets | 5 linkedin
Target raises numbers hit by data breach from 40 million to 70 million

Target raises numbers hit by data breach from 40 million to 70 million

10 January 2014  |  5779 views  |  1 comments | 11 tweets | 6 linkedin
Credit Union lobby urges Congress to act on retailer data security failings

Credit Union lobby urges Congress to act on retailer data security failings

20 December 2013  |  6370 views  |  1 comments | 3 tweets | 9 linkedin
Target says 40 million cards may have been compromised in data breach

Target says 40 million cards may have been compromised in data breach

19 December 2013  |  9774 views  |  2 comments | 11 tweets | 12 linkedin
Visa and MasterCard agree US chip tech licensing deal to ease EMV migration

Visa and MasterCard agree US chip tech licensing deal to ease EMV migration

30 July 2013  |  11074 views  |  0 comments | 12 tweets | 5 linkedin
US chip card debate heats up

US chip card debate heats up

26 April 2013  |  11261 views  |  0 comments | 13 tweets | 7 linkedin
Discover joins US EMV bandwagon

Discover joins US EMV bandwagon

15 March 2012  |  8534 views  |  0 comments
MasterCard joins push for US EMV switch

MasterCard joins push for US EMV switch

31 January 2012  |  11539 views  |  4 comments
Visa: US EMV move doesn't mean chip and PIN

Visa: US EMV move doesn't mean chip and PIN

17 January 2012  |  16607 views  |  7 comments | 1 tweets
Visa cites m-payments as it pushes US to EMV

Visa cites m-payments as it pushes US to EMV

09 August 2011  |  16502 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the report nowvisit www.events.sap.comvisit www.finastra.com

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
10846 views comments | 4 tweets | 5 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
9984 views comments | 3 tweets | 4 linkedin
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
8602 views comments | 19 tweets | 33 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
7945 views 0 | 4 tweets | 2 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job