Target, looking to spread a bit of goodwill after their massive security breach, is offering a 10% discount to all shoppers this Saturday and Sunday. In an announcement by Target CEO Gregg Steinhafel, he made it clear that the breach is “confusing and disruptive during an already busy holiday season.” Target announced they are making their guest a top priority, and they are committed to making this right.
So what happened at Target and how could your information have been compromised? Target has just begun releasing details. Apparently, credit and debit cards which were used between Nov. 27 and Dec. 15 in their stores, could have been hacked, although the store is quick to note that “there is no indication any debit card PIN numbers were compromised.”
The store also has notified its customers that the hackers were not able to get the security codes from the cards which means the information probably cannot be used to shop online or to retrieve cash from ATMs. But Robert Ahdoot, a lawyer who is working to file a class action suit on behalf of the shoppers, says this may not be true. He believes there are credit and debit card holders who have had money stolen from their bank accounts through ATMs as well.
What will the class action lawsuit against Target seek?
If a class action claim is filed against Target it will request compensation for the damages customers suffered due to Target’s negligence. At the heart of the suit is the suggestion that Target did not promptly notify its customers of the security breach.
Target did not have a comment about the pending litigation and would not comment about their obligation to provide adequate security for the financial information they collect.
The good news is some of the customers’ data was not compromised including birth dates and social security numbers. All credit card companies have been notified of the security breach including Discover, American Express, MasterCard and Visa. Target is also continuing to monitor its own card.
Target has also provided free credit monitoring to its customers and will assume all financial responsibility for the security breach. Target has also created a hotline for Target customers, although reports indicate it has been difficult for some consumers to reach a support member.
How did the breach occur?
The techniques used to hack a store’s security system are not new, but given the amount of information and the sheer volume of credit card numbers stolen, experts suspect the hackers were able to target the retailer’s point-of-sale system. Information could have been collected at several points in the sales process including at the point the customer entered their credit card data at the terminals or while the financial data was en route from Target to its credit card processors.
Target instigated a full investigation of the security breach as soon as they were aware it occurred and has now reports the breach has been identified and resolved.
What now? Now, it’s time for Target customers to let the healing began by feverishly buying on Target’s dime.
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