Banklike Data Security Rules for Retailers Would Reduce Breaches

By Wilkinson, Molly | American Banker, June 13, 2017 | Go to article overview

Banklike Data Security Rules for Retailers Would Reduce Breaches


Wilkinson, Molly, American Banker


Byline: Molly Wilkinson

Target's recent settlement with 47 states and the District of Columbia over the retailer's 2013 data breach brought to mind this well-known John F. Kennedy quote: "There are risks and costs to a program of action -- but they are far less than the long-range cost of comfortable inaction."

The $18 million settlement is in addition to $202 million in legal fees and other expenses resulting from the breach, in which hackers stole data from up to 40 million credit and debit cards of shoppers who had visited Target stores during the holiday season.

With hacking and data breaches on the rise, it is more important than ever for merchants to protect their customers' personal financial information. New reports surface almost weekly of the sneaky methods used by hackers, like skimmers and malware, to steal credit card numbers and other identification for their criminal activities. It is time for merchants to take data security more seriously and invest in their customers' safety.

As of June 6, there have already been over 700 data breaches in 2017, exposing over 10.8 million records, according to the Identity Theft Resource Center. Retailers are among some of the biggest targets, and restaurants and hotels are increasingly falling victim, too.

Today's consumers choose to pay with credit cards and other electronic payment methods at places they frequent on a regular basis, trusting that large corporations have security protocols in place. Some companies may have invested time and money in new infrastructure to protect consumer information, but retailers are not held to the same data security standards as the financial sector, which is subject to regulation and oversight by the federal government.

The hotel industry was affected by a massive data breach that surfaced on May 4. Sabre Corp., a Texas technology company that provides reservation software to more than 32,000 hotels worldwide, was notified of unauthorized access to payment information, and quickly scrambled to close the loophole in their data security system. Sabre still does not know how much information was compromised.

Arby's was another recent hacker target. As was reported in February, from October 2016 through January 2017 as many as 355,000 credit cards were compromised due to a malware attack on cash registers. Arby's became aware of the hack in mid-January, after the company was alerted by a credit monitoring service.

Best American Hospitality Corp., the restaurant group that owns Church's Chicken and the 70-year-old Shoney's chain, also suffered a breach that started in late December 2016 and went through early March. That breach, too, was caused by cash registers infected with malware at 37 locations. Credit card numbers, customer names, expiration dates and verification codes were all compromised.

Just last week, Sears announced that payment systems for its Kmart stores had been infected with malware. Though Sears says the attack was identified and contained, it did confirm that customers' credit card information was compromised. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Banklike Data Security Rules for Retailers Would Reduce Breaches
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.