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
2/5/2014 9:00:05 PM
How often do people need to purchase online while on the go?
You have to be clinically insane to even ask that question.
I'm sorry, you're clearly just daft and refuse to take your head out of the sand. USB card readers as a mandatory item to make online purchases is f%cking retarded, and there is quite simply no f%cking way it would ever work.
2/6/2014 1:28:27 PM
Where are you getting mandatory? I have never said mandatory, you keep putting that up there. Read something before you respond. I said have the option of a more secure payment method. If you want to use it (and be much more safe) go ahead, otherwise you the old way, and be less secure.
The key here is to give the option.
2/6/2014 1:31:20 PM
Also - you say I have to be clinically insane, (maybe I am), but I can count on 1 hand how many times I have made an online purchase while out and about. The main time I want to make an online purchase is from home. The main reason most want to make online purchases is for the convenience of doing it from home, which means they are at home.
Maybe I am in the minority, and everybody is out there getting in their car and driving around just to make online purchases, but that seems like the exception rather than the rule (at least in my clinically insane mind).
"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
Quick Note: Target Data Breach Affected 70 Million Customers
January 10, 2014, 9:32 AM
Mozilla Promise Punctual Windows 10 Firefox Release, Teases at iOS Arrival
July 7, 2015, 3:08 PM
Netflix Announces 7-to-1 Stock Split, Eyes Explosive Overseas Growth
June 23, 2015, 8:18 PM
Sources: Hack on Fed. Database Lost 4.1M Social Security Numbers, Personal Info
June 11, 2015, 9:11 PM
The Big One: Chinese Hackers Steal Records of 4 Million U.S. Gov. Employees
June 4, 2015, 8:13 PM
Tutorial: Here's How to Force YouTube or Vimeo VIdeos to Embed as HTML5
June 3, 2015, 10:14 PM
Google Finally Fixes Maps Bug That Was Giving Racist, Profane Results
May 21, 2015, 1:43 PM
Most Popular Articles
F-16 Schools Trillion-Dollar F-35 in Mock Combat, Fleeing is Best Option Pilot Admits
July 1, 2015, 5:53 PM
Apple Music: The Money, The Launch Hiccups, and the Nitty Gritty Details
June 30, 2015, 5:09 PM
Apple iOS 8.4 Rolls Out w/ Fix to Crash-Causing Unicode Text
June 30, 2015, 3:24 PM
Windows XP, Vista Users Can Get Free Windows 10 Upgrade Thanks to Loophole
June 23, 2015, 2:23 PM
Quick Note: Lumia 940 XL "Cityman" Phablet Gets Teased Via Tests
June 29, 2015, 5:51 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 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information