Target Corporation (TGT) Suffers Credit Card Security Violation

0
Target Corporation (TGT) Suffers Credit Card Security Violation
By The original uploader was Svgalbertian at English Wikipedia [Public domain], via Wikimedia Commons

In what could be the second largest credit and debit card breach, specialty retailer Target Corp. (TGT) acknowledged that security of nearly 40 million credit and debit accounts of its customers were compromised. Though the company did not disclose how the lapse occurred, it assured it was taking help of federal law enforcement and external experts to tighten the security to avoid similar frauds, going forward.

Play Quizzes 4

According to Target, the hacking took place during the ongoing holiday season – from a day before Thanksgiving up to Dec 15. A source familiar with the investigation authorities claimed that the company was alerted by credit card processors who detected an increase in dubious transactions pertaining to cards used at Target stores.

The credit and debit card security breach of Target’s consumers could result in loss of millions of dollars. However, lawyers and other experts on the matter remain tight-lipped as to who is likely to bear the expense.

This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

In 2007, the biggest security breach in U.S history was detected when The TJX Companies, Inc. (TJX) – a leading off-price retailer of apparel and home fashions –reported data theft involving nearly 90 million credit and debit cards over a span of about one and a half years beginning Jul 2005 to Dec 2006. In 2009, TJX Companies agreed to shell out $9.75 million in settlement with several states.

Ever since, companies like Wal-Mart Stores Inc. (WMT) as well as Target have been deploying substantial cash to tighten security. It is quite surprising that hackers could breach the security at Target in spite of the company’s safeguards. Target has asked its customers to report any discrepancy in their card statements either to the company or to the Federal Trade Commission or the Credit card Company.

Irate consumers have taken to social media whereas a California-based customer filed a lawsuit against Target seeking damages for the cyber breach. Lawyers believe that Target could be slapped with more litigation charges in the coming days. Though public memory tends to be short lived, the scandal could mar the retailer’s performance in the crucial holiday season.

Target is the second largest discounter and operates 1,797 stores in the U.S. It currently carries a Zacks Rank #3 (Hold). Another better-ranked retail stock is PriceSmart Inc. (PSMT) with a Zacks Rank #2 (Buy).

PRICESMART INC (PSMT): Free Stock Analysis Report

TARGET CORP (TGT): Free Stock Analysis Report

TJX COS INC NEW (TJX): Free Stock Analysis Report

WAL-MART STORES (WMT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Updated on

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were audited and attested by Baker Tilly, an independent accounting firm.
Previous article iPad 6 To Challenge Galaxy Note 12.2
Next article S&P Strips European Union Of Triple A Rating

No posts to display