Target names DeRhodes CIO; partners MasterCard for chip and PIN
29 April 2014 | 5038 views | 0
Target has hired industry veteran Bob DeRodes to overhaul its security efforts in the wake of its recent massive data breach. The retail giant has also outlined plans to incorporate MasterCard chip and PIN technology across its card portfolio.
DeRodes has been appointed EVP and chief information officer, overseeing the technology team and operations, developing a long-term information technology and digital roadmap.
However, his most immediate task will be directing efforts to improve the retailer's data security, which was compromised before Christmas when hackers installed malware on POS devices and stole the card details of around 40 million shoppers.
The breach cost DeRodes' predecessor as CIO Beth Jacob her job. The company is also still searching for a new chief information security officer and chief compliance officer.
DeRodes comes to Target with more than 40 years of experience, having held technology positions at CitiBank, USAA Federal Savings Bank, First Data, Home Depot and Delta Air Lines. He has also served as a senior advisor to several government agencies, including the department of homeland security.
Gregg Steinhafel, CEO, Target, says: "I believe Target has a tremendous opportunity to take the lessons learned from this incident and enhance our overall approach to data security and information technology. Bob's history of leading transformational change positions him well to lead our continued breach responses and guide our long-term digital strategy."
Meanwhile, Target says that it has already committed to move its entire REDcard portfolio, including all Target-branded credit and debit cards, to MasterCard chip-and-PIN technology from early 2015. This is part of a $100 million plan that will see new payment terminals installed in all 1797 US stores by September.
Separately, the EMV Migration Forum has released a technical EMV debit framework designed to help the industry make the transition from mag-stripe cards.
Randy Vanderhoof, director, EMV Migration Forum, says: "This technical framework addresses the fundamental challenge faced by the U.S. debit payments industry: how to implement EMV for debit cards with the flexibility to meet compliance guidelines established by the Federal Reserve rulemaking that may change over time."