Kmart Data Breach 2017: Retailer Hit By ANOTHER Credit Card Hack

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For the second time in less than two years, Kmart Stores has been hit by hackers in a a malware-based security breach of its store credit card processing systems. Parent Sears Holdings Corp (NASDAQ:SHLD) said the breach failed to steal identifying information, such as customer names or social security numbers.

Kmart

In October 2014, Sears reported a similar breach, also stressing then that the data stolen did not include customer names, email addresses or other personal information.

The attackers are believed to have used the stolen data to create counterfeit cards and make purchases on those cards, Sears senior vice president Gareth Glynne said in a post on the company’s website.

“We believe the exposure to cardholder data that can be used to create counterfeit cards is limited,” he said. “Once aware of the new malicious code, we quickly removed it and contained the event,” he said. “We are confident that our customers can safely use their credit and debit cards in our retail stores.”

The breach couldn’t come at a worse time. As InvestorPlace contributor Laura Hoy wrote last week “Investors should stay far, far away from Sears stock, because the share price is likely heading to zero.”

“It’s no secret that the retail sector is undergoing a major shift that has left big-box department stores scrambling to keep up with the competition,” she noted. “Sears is quite literally at the end of its rope. The company’s massive debt load coupled with its failure to make any real progress with its online presence or physical store foot traffic has put it in a terrible position for the future.”

SHLD stock was up more than 4% this morning, though the gain may be nothing more that the proverbial “dead cat bounce”. The shares declined 28% in May.

 


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/kmart-data-breach-2017-retailer-hit-by-another-credit-card-hack/.

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