The Enid News and Eagle, Enid, OK

National and world

December 27, 2013

Target: Customers' encrypted PINs were stolen

ATLANTA — Target said Friday that debit-card PINs were among the financial information stolen from millions of customers who shopped at the retailer earlier this month.

The company said the stolen personal identification numbers, which customers type in to keypads to make secure transactions, were encrypted and that this strongly reduces risk to customers. In addition to the encrypted PINs, customer names, credit and debit card numbers, card expiration dates and the embedded code on the magnetic strip on back of the cards were stolen from about 40 million credit and debit cards used at Target stores between Nov. 27 and Dec. 15.

Security experts say it's the second-largest theft of card accounts in U.S. history, surpassed only by a scam that began in 2005 involving retailer TJX Cos.

Target said it doesn't have access to nor does it store the encryption key within its system, and the PIN information can only be decrypted when it is received by the retailer's external, independent payment processor.

"We remain confident that PIN numbers are safe and secure," spokeswoman Molly Snyder said in an emailed statement Friday. "The PIN information was fully encrypted at the keypad, remained encrypted within our system, and remained encrypted when it was removed from our systems." The company maintains that the "key" necessary to decrypt that data never existed within Target's system and could not have been taken during the hack.

However, Gartner security analyst Avivah Litan said Friday that the PINs for the affected cards are not safe and people "should change them at this point."

Litan said that while she has no information about the encrypted PIN information in Target's case, such data has been decrypted before, in particular the 2005 TJX Cos. hacking case that's believed the largest case of identity theft in U.S. history.

In 2009 computer hacker Albert Gonzalez plead guilty to conspiracy, wire fraud and other charges after masterminding debit and credit card breaches in 2005 that targeted companies such as T.J. Maxx, Barnes & Noble and OfficeMax. Gonzalez's group was able to decrypt encrypted data. Litan said changes have been made since then to make decrypting more difficult but "nothing is infallible."

"It's not impossible, not unprecedented (and) has been done before," she said.

Besides changing your PIN, Litan says shoppers should opt to use their signature to approve transactions instead because it is safer.

Still, she said Target did "as much as could be reasonably expected" in this case. "It's a leaky system to begin with," she said.

Credit card companies in the U.S. plan to replace magnetic strips with digital chips by the fall of 2015, a system already common in Europe and other countries that makes data theft more difficult.

Minneapolis-based Target Corp. said it is still in the early stages of investigating the breach. It has been working with the Secret Service and the Department of Justice.

~~~

Ortutay contributed from San Francisco.

 

1
Text Only
National and world
  • LibyaEvac.jpg US evacuates embassy in Libya amid clashes

    The United States shut down its embassy in Libya on Saturday and evacuated its diplomats to neighboring Tunisia.

    July 26, 2014 1 Photo

  • Ukraine Plane web.jpg U.S.: Russia is firing artillery across border into Ukraine

    If true, the allegations mean Moscow is playing a more direct role in the fighting than it has been accused of up to now — a dangerous turn in what is already the gravest crisis between Russia and the West since the end of the Cold War.

    July 26, 2014 1 Photo

  • Resilient Stocks web.jpg Global tensions don’t dent U.S. enthusiasm for stocks

    As they have all year, investors responded by using it as an opportunity to buy stocks. In fact, they’ve “bought on the dip” consistently for three years, keeping the market’s slips from becoming slides. Stock pullbacks since 2011 have been rare and relatively small, and none have become severe enough to qualify as a correction, Wall Street parlance for a fall of 10 percent or more from a peak.

    July 26, 2014 1 Photo

  • Obama leaders web.jpg Migrants: President Obama urges Latino leaders, Republicans to help

    White House adviser Dan Pfeiffer said that House Speaker John Boehner’s effort to sue Obama over his use of executive authority “has opened the door for Republicans possibly considering impeachment at some point in the future.”

    July 25, 2014 1 Photo

  • Mideast web.jpg Gaza sides agree to lull but truce efforts stall

    The latest diplomatic setbacks, after several days of high-level diplomacy in the region, signaled that both sides are digging in and that the fighting in Gaza is likely to drag on.
    Israel wants more time to destroy Hamas military tunnels and rocket launching sites in Gaza, while the territory’s Hamas rulers want international guarantees that a Gaza border blockade will be lifted before they cease fire.

    July 25, 2014 1 Photo

  • APTOPIX Hospital Shoo_Hass.jpg Official: Hospital gunman intended to kill others

    A psychiatric patient ranted about a hospital gun ban before opening fire at the suburban medical complex, killing his caseworker and grazing his psychiatrist before the doctor pulled out his own weapon and fired back.

    July 25, 2014 1 Photo

  • Darth Vader is polling higher than all potential 2016 presidential candidates

    On the other hand, with a net favorability of -8, Jar Jar is considerably more popular than the U.S. Congress, which currently enjoys a net favorability rating of -65.

    July 25, 2014

  • g000258000000000000245c0063741aaafcc815c5b3199362fb09f8a7c3.jpg Llama on the loose corralled in Missouri town

    
Gibson called Diamond City Hall for help but the police chief was out on another call. The city clerk came to join in the surveillance ...

    July 25, 2014 2 Photos

  • Severe Weather web.jpg Tornado slams Virginia campground; 2 dead

    A couple from New Jersey was killed when a tree fell on their tent. Their 13-year-old son, in a tent next to them, had life-threatening injuries.
    He was among three dozen people hurt.

    July 25, 2014 1 Photo

  • Aviations Bad Week web.jpg Bad week for aviation: Airline disasters come in a cluster

    Industry analysts and safety experts shake their heads at the seeming randomness of the tragedies, saying they can find no common themes. Nor do they think the events indicate that flying is suddenly becoming less safe.

    July 25, 2014 1 Photo

Featured Ads