Target Calls to Replace Credit, Debit Cards with Smartcards After Security Breach
February 4, 2014 3:09 PM
comment(s) - last by
Smartcards have tiny microprocessor chips instead of magnetic strips
Target was the victim of a
major security breach
over the holiday season last year, and as a result, the retail chain is calling for the implementation of smartcards.
John J. Mulligan, chief financial officer and executive vice president for Target, wrote his company's case for smartcards in
this week, saying that the business community in the U.S. needs to embrace the new technology together.
Smartcards, unlike current credit and debit cards used in the U.S., have a tiny microprocessor chip that encrypts the user's personal data shared with the merchant's sales terminals. Traditional credit and debit cards have a magnetic strip instead, which hold's the user's information, but can clearly be compromised. If a smartcard number is stolen, it's useless without the microchip.
To show Target's dedication to the smartcard cause, it's speeding up its goal of bringing its REDcard smartcards to all Target stores by early 2015 -- six months earlier than its previous goal. The chain is making a $100 million investment in the technology to accomplish this goal.
Mulligan also noted that the requirement of a four-digit PIN number with all smartcard transactions could further protect customer information.
[SOURCE: ABC News]
Target said other countries like Canada and the United Kingdom have already deployed smartcards, and that cases of lost or stolen cards have decreased since they've done so. However, the U.S. is slow to adopt the technology because the cards are expensive to produce, and merchants, issuers, banks and the networks haven't found a way to share the costs.
"The reported attacks on Target and Neiman Marcus underline the need to do more," said Mulligan. "At Target, we know we have work to do. For years, we made significant investments in security. We had multiple layers of protection in place. But we still came under attack by sophisticated, global criminals. We will do everything we can to further strengthen Target's systems."
Target attempted to deploy chip-enabled cards around 10 years ago, but since it was the only retailer to do so on that scale, it failed. The cards were too expensive to produce, and since Target was the only one with such a card, customers couldn't use it elsewhere, making it inconvenient and a bit confusing.
Target's breach ran from November 27 through December 15, where customer information like their names, card numbers, expiration dates and CVV verification codes were compromised. Around 40 million customers had their credit cards compromised and 70 million had their customer records stolen.
This article is over a month old, voting and posting comments is disabled
RE: Target: "We're incompetent - make technology harder"
2/4/2014 4:26:25 PM
That was going to be my suggestion, maybe Target should only accept cash.
Just last week I received my replaced debit card since the breach =(
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
Quick Note: Target Data Breach Affected 70 Million Customers
January 10, 2014, 9:32 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information