Feeds

Target finally implements chip and PIN card protections

Barn door closed, but the horses are three towns away

The Essential Guide to IT Transformation

Embattled US big-box retailer Target, still struggling to handle one of the largest and most expensive card heists in history, is implementing chip and PIN payment card systems for its stores.

The company on Tuesday said that it will be working with MasterCard to move all of its REDcard customer cards over to chip and PIN units. The switchover will include customers who use Target's branded credit and debit cards.

The transition for the the new cards is set to kick off in 2015 as the company moves both its branded and co-branded payment cards to the new, more secure format.

"Target has long been an advocate for the widespread adoption of chip-and-PIN card technology," said Target CFO and executive vice president John Mulligan.

"As we aggressively move forward to bring enhanced technology to Target, we believe it is critical that we provide our REDcard guests with the most secure payment product available. This new initiative satisfies that goal.”

By requiring two-factor authentication, chip and PIN cards can help to dramatically reduce the risk of account theft from stolen or cloned cards. Though the format has been found to have its weaknesses, the system is generally considered preferable to simply swiping cards.

Overseeing Target's effort will be Bob DeRodes, Target's new executive vice president and chief information officer. A former adviser for the US Department of Homeland Security, DeRodes was also touted by Target for his past work in helping to secure data for a number of US banks and financial institutions.

The moves come as Target continues to overhaul its security policies in the wake of a security breach which late last year resulted in the loss of roughly 40 million customer payment cards. The breach, which has been traced back to a network intrusion, hit the company at the height of the holiday shopping season.

In subsequent investigations of the incident, researchers suggested that the company ignored the early warning signs of a possible attack, responding only when US government investigators alerted the company of a breach on its systems.

Target said that since the attack it has committed to a $100m overhaul of its payments systems. The company figures to pay even more to settle losses from the incident and cover credit monitoring services for customers whose account information was compromised. ®

Build a business case: developing custom apps

More from The Register

next story
14 antivirus apps found to have security problems
Vendors just don't care, says researcher, after finding basic boo-boos in security software
'Things' on the Internet-of-things have 25 vulnerabilities apiece
Leaking sprinklers, overheated thermostats and picked locks all online
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Only '3% of web servers in top corps' fully fixed after Heartbleed snafu
Just slapping a patched OpenSSL on a machine ain't going to cut it, we're told
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
Tor attack nodes RIPPED MASKS off users for 6 MONTHS
Traffic confirmation attack bared users' privates - but to whom?
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.