Tuesday | 7 October, 2008
Computerworld
TJX breach shows IT security lacks in retail industry
Breach shows why it's so vital to purge the Track 2 data from POS and other systems
Jaikumar Vijayan 22/01/2007 09:36:08

Computerworld Buyer's Guide - Vendors Matched to this Article
Related Features
  • +

    Ticked Off at Tick the Box Mentality 04/02/2008 13:01:15

    Does your executive search firm know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients?
    Does your executive search firm know its MIS managers from its elbow? Does it even know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients?
  • +

    What Price Innovation? 05/11/2007 13:44:31

    CIOs say they want more than the traditional “your mess for less” relationship with their outsourcing providers. And the providers want to market themselves as partners in innovation. So why isn’t it happening?
    CIOs say they want more than the traditional "your mess for less" relationship with their outsourcing providers. And the providers want to market themselves as partners in innovation. So why isn't it happening?
  • +

    Strategies for Dealing With IT Complexity 24/12/2007 10:30:47

    Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business.
    Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business.
Additional Resources
Executive Guides
Whitepapers
Zones
Zone logoZones provide focussed content from Computerworld and leading technology partners.

Newsletter Subscription

Sign up for our Computerworld newsletters!
Computerworld's twice-daily news service keeps you in touch with the latest, most important headlines from Australia and around the world.
Keep up with the latest virtualisation technologies, products, news and features.
RSS Feeds

The scope of the security breach disclosed this week by The TJX Companies is starting to make itself evident, with more than three dozen banks in Massachusetts alone now reporting that cards they issued have been compromised.

A spokesman for the Massachusetts Bankers Association said this afternoon that 40 of the MBA's 205 member banks have said they suffered card compromises as a result of the breach at TJX. That number is sure to grow as more banks report to the association, he added, noting that only about 60 have done so thus far.

In addition, the MBA spokesman said some of the banks affected by the breach have confirmed through credit card companies that the information stolen in the breach includes so-called Track 2 data taken from the magnetic stripes on the back of credit and debit cards.

Benson Bolling, assistant vice president of lending at the Alabama Credit Union in Tuscaloosa, also said this week that based on alerts from Visa U.S.A., Track 2 data appears to have been compromised in the breach.

Track 2 data includes account numbers, expiration dates and encrypted personal identification numbers, plus other information that card-issuing banks can include at their discretion. Its apparent inclusion in the breach at TJX provides fresh evidence that IT security remains fragile at some large retailers despite efforts by credit card companies to get them to better protect customer data.

Retailers are forbidden from storing such information under the Payment Card Industry (PCI) Data Security Standard being pushed by Visa, MasterCard International Inc. and other credit card companies. But many retailers continue to do so, often because their point-of-sale systems capture and store the data by default.

Bolling said Alabama Credit Union is recalling and replacing about 2,900 Visa debit and credit cards after having received the alerts from Visa about card information -- including Track 2 data -- being compromised in a retail breach. The alerts didn't identify the affected retailer, Bolling said.

TJX said last week that an "unauthorized intruder" gained access to its systems in mid-December and may have made off with the card data of an unspecified number of customers in the U.S., Canada and Puerto Rico, and possibly in the U.K. and Ireland as well.

The retailer, which owns chains such as TJ Maxx, Marshalls and Bob's Stores, didn't disclose the number of shoppers that may have been affected by the breach, saying that the full extent of the data theft "is not yet known."

Ben Cammarata, TJX's chairman and acting CEO, said in a letter to customers on the retailer's Web site that company officials were "extremely disappointed" when the intrusion was discovered. TJX has since hired both IBM and General Dynamics to help it evaluate the extent of the data compromises and implement unspecified security upgrades designed to better protect its systems.

In a statement released yesterday, Daniel Forte, CEO of the Boston-based MBA, criticized what he said was TJX's characterization of itself as a victim of the data breach, "when what it appears they may have been doing is capturing data that is unnecessary."

Computerworld Buyer's Guide - Vendors Matched to this Article
Market Place

Computerworld Member Login


 

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
Whitepaper

Solve Exchange Storage Problems Once and For All: A New Approach without Stubs or Links

The management of Microsoft® Exchange storage growth is the most challenging problem facing Exchange administrators. Because of the popularity of email as a communication technology, and because users tend to keep email, maintaining adequate storage on the Exchange Server is a constant challenge. Learn how to maintain the space you need by reading on.

Enterprise IT Buyer's Guide
Find Technology Vendors Fast
 
Find vendors by name | Find by category
Sponsored Links