Business

Target Customers At Risk After Credit Card Security Breach

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(Photo credit DON EMMERT/AFP/Getty Images)

(Photo credit DON EMMERT/AFP/Getty Images)

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MINNEAPOLIS (CBSMiami/AP) — If you shop at Target, be on the lookout for fraudulent charges on your credit and debit cards. The Secret Service is now investigating whether card information was stolen from Target in what’s being called a massive data breach.

Target says that about 40 million credit and debit card accounts may have been affected by a data breach that occurred just as the holiday shopping season shifted into high gear.

The chain said that accounts of customers who made purchases using their cards at its U.S. stores between Nov. 27 and Dec. 15 may have been exposed. The stolen data includes customer names, credit and debit card numbers, card expiration dates and the three-digit security codes located on the backs of cards.

The Minneapolis company said it immediately told authorities and financial institutions once it became aware of the breach and that it is teaming with a third-party forensics firm to investigate the matter and prevent future breaches. It. said it is putting all “appropriate resources” toward the issue.

Target Corp. advised customers to check their statements carefully. Those who suspect there has been unauthorized activity on their cards should report it to their credit card companies and call Target at 866-852-8680. Cases of identity theft can also be reported to law enforcement or the Federal Trade Commission.

Target didn’t say exactly how the data breach occurred, but said it had since fixed the problem and that credit card holders can continue shopping at its stores.

But news of the breach comes at the height of the holiday shopping season and threatens to scare away shoppers worried about the safety of their personal data.

CBS4’s Jamie Guirola spoke to several Target shoppers. Most were aware of the security breach but they don’t blame Target.

Tiffany Cabak, a customer, told Guirola she had heard of the breach through social media.

“A little uneasy but I know that my Mastercard always covers me with any unauthorized purchases so I’m not really upset about it,” said Cabak.

Leah Brooks told Guirola that she was indeed extra cautious–especially so because of the holiday season.

“It’s around Christmas time. I don’t want to see my bank statement go down so I’d be very concerned if somebody had my information

Target is just the latest retailer to be hit with a data breach problem. TJX Cos., which runs stores such as T.J. Maxx and Marshall’s, had a breach that began in July 2005 that exposed at least 45.7 million credit and debit cards to possible fraud. The breach wasn’t detected until December 2006. In June 2009 TJX agreed to pay $9.75 million in a settlement with multiple states related to the massive data theft but stressed at the time that it firmly believed it did not violate any consumer protection or data security laws.

An even larger hack hit Sony in 2011. It had to rebuild trust among PlayStation Network gamers after hackers compromised personal information including credit card data on more than 100 million user accounts. Sony was criticized for slowness in alerting users to the breach.

“Target’s first priority is preserving the trust of our guests and we have moved swiftly to address this issue, so guests can shop with confidence. We regret any inconvenience this may cause,” Chairman, President and CEO Gregg Steinhafel said in a statement Thursday.

Target has 1,797 U.S. stores and 124 in Canada.

(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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