Target Fraud - Article Example

Target fraud Task: Target Corporation received reports that discounted retailers had suffered losses that were as a result ofbreach of security. The businesses became victims of massive data breach after their financial information systems were hacked. The company lost confidence of their customers and were worried that they would not meet their targets in the subsequent shopping periods (Germano 2013, p.1). The fraud which accounted to 20 days affected 40 million debit and credit cards. The company blamed some of its customers of lack of adherence to proper information system management.

In fact, the required security standards were not met. The reported security breach that took place during the holiday season could have also led to loss of personal information. Customers that shopped in the period between November 27 and December 15 were warned by the retailers (The Canadian Press 2014, p.1). They received emails from the retailers that their security information were at risk and needed to be upgraded. In the investigations on the fraud, it was found that personal information like phone numbers, emails, addresses, names among others were stolen from the customers.

The company asserted that the payment card breach did not affect the target stores. The report of the investigation was that personal information of 70 million customers were affected as well as 40 million debit and credit cards. However, the company said that personal information like dates of birth, debit card PIN numbers, and social security numbers were not accessed (The Canadian Press 2014, p.1). This implied that there was no indication that fraudulent cards were used to withdraw cash from automatic teller machines.

Does is mean that there is anybody to pass the blame to? Obviously yes. Security requirements need to be complied with in order to enjoy maximum confidence. Target disclosed that the only data exposed during the breach of security were information that were embedded on the cards. These included security codes, names, debit card numbers, and credit card numbers. The thieves behind the event used malicious software to get information on the magnetic stripes on the cards. They timed customers at various point-of-sale terminals that belonged to Target (Target 2003, p.1). The affected financial institutions had taken the initiative of investigating whether the breach of security information could result to cases of fraud.

Part of the blame was passed to banks in that they were to take the responsibility for the financial losses associated with the malicious activity. It followed that some institutions paid the affected companies the specified amount of compensation as a result of the incident of security breach at the various discount retailers. In connection with the incident, two people were arrested. With the assistance of Customs Enforcement and U.S Immigration, the two suspects were confirmed. It was found that they entered Texas in the same vehicle and proceeded to commit the crimes (Germano 2013, p.1). They were accused of production of fraudulent cards as well as acquisition of fraudulent account data.

It is the responsibility of the affected individuals to upgrade their security systems and information to the required standard level. This is to ensure safety and confidence of information. References: (2003). New Bugbear Targets Banks. Computer Fraud & Security, 2003(7), 2. (2004). FTC Targets Unwitting Spammers. Computer Fraud & Security, 2004(2), 3. Associated Press. (2014). Feds, police differ over whether Texas border arrests lined to target breach. Fox News. Retrieved on January 22nd 2014 from http://www.foxnews.com/us/2014/01/21/2-nabbed-at-texas-border-in-credit-card-fraud-case/ Germano, S. (2013). Target says few Fraud reports Card data Breach.

The Wall Street Journal. Retrieved on January 22nd from http://online.wsj.com/news/articles/SB10001424052702304773104579270591741798968 The Canadian Press. (2014). Target data breach may affect some Canadians. CBCnews. Retrieved on January 22nd 2014 from http://www.cbc.ca/news/business/target-data-breach-may-affect-some-canadians-1.2504226