Target data breach went on longer than previously thought
| Washington
An executive of聽Target聽Corp. said Tuesday the retailer has taken actions to shore up security following the massive聽breach聽of millions of consumers'聽data聽during the holiday season.
The testimony at a Senate hearing by John Mulligan, executive vice president and chief financial officer at the No. 2 U.S. discounter, also revealed that聽Target聽discovered an additional 25 cash registers infected by malicious software on Dec. 18. The company had said earlier that it had removed all the malware from its system by Dec. 15.
Mulligan's testimony before the Senate Judiciary Committee was the first public appearance by a聽Target聽executive addressing the issue since the聽breach聽that occurred between Nov. 27 and mid-December. An estimated 40 million credit and debit card accounts were affected.
Mulligan said聽Target聽is "deeply sorry" for the effect of the聽data聽theft on consumers, and he acknowledged that their confidence in the Minneapolis-based company has been shaken.
Sen. Patrick Leahy, D-Vt., the panel's chairman, said the erosion of consumers' confidence 鈥� with聽data聽breaches聽on the rise affecting retailers, Internet companies and others 鈥� could hinder the U.S. economy's recovery.
The recent聽data聽hackings at聽Target, luxury retailer Neiman Marcus and arts-and-crafts chain Michaels Stores "compromised the privacy and security of millions of consumers," Leahy said.
Senators pressed Mulligan and Michael Kingston, senior vice president and chief information officer at Neiman Marcus Group Inc., about how quickly they notified customers of the聽breaches.
Mulligan said聽Target聽executives were told on Dec. 12 by the Justice Department of suspicious activity involving payment cards. The company started an investigation, removed malware and publicly announced the聽data聽theft on Dec. 19.
A processing firm told Neiman Marcus of a problem on Dec. 13, and the company's investigators made a report on Jan. 2, Kingston said. Customers were notified on Jan. 10. The malware causing the聽breach聽appeared to have been operating in many Neiman Marcus stories between July and October, Kingston testified.
An estimated 1.1 million accounts were affected.
