Target says data breach up to 110 mn customers

New York (AFP) - Giant US retailer Target said Friday that up to 110 million customers have had their personal data stolen in a data breach, sharply raising its initial estimate.

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The number of people affected represented one in three Americans, and the scope of the information stolen was much broader than originally thought, Target admitted.

Target initially reported on December 19 that payment card data of some 40 million customers had been obtained by hackers during the year-end holiday shopping season.

The stolen information included credit and debit card data, customer names and PIN (personal identification data) numbers.

On Friday, Target said that its investigation had revealed that hackers also stole a second batch of data that included names, mailing addresses, phone numbers or email addresses for up to 70 million people.

"This theft is not a new breach; these are two distinct thefts as part of the same breach," a Target spokesman told AFP.

"The 70 million guests impacted by this new development are separate from the 40 million number that was previously shared."

Target chief executive Gregg Steinhafel said the company was "truly sorry" for the data breach.

Target said consumers would have "zero liability" due to any fraudulent charges arising from the theft. It offered one year of free credit monitoring protection.

Target is cooperating with an investigation led by the Justice Department and Secret Service. A group of state attorneys general have launched a parallel investigation aimed at protecting victims.

New York Attorney General Eric Schneiderman called the new disclosure "deeply troubling."

"Consumers in New York and around the country expect and deserve companies that protect their personal information when they shop on their websites and in their stores," Schneiderman said in a statement.

Target said the news of the data theft, which came at the peak of the Christmas shopping season, impacted sales in its stores.

It said it now expects fourth-quarter comparable store sales to decline 2.5 percent from its prior forecast of flat sales.

The company said it may need to take a charge for expenses related to the data breach to cover potential costs, including reimbursements for credit card fraud, liabilities from civil litigation, government investigations and enforcement proceedings.

Target shares shed 1.1 percent to $62.62 on Friday.

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Target 'Guest Info' Also Stolen in Black Friday Breach

Victoria Craig Published January 10, 2014

FOXBusiness

Target (TGT) said Friday the number of customers affected by its holiday shopping data breach surged to 70 million from 40 million, and the range of information broadened to include not just customer card information, but ‘guest information’ as well.
The retailer reassured its customers this latest development is not part of a new breach, but was uncovered as part on the ongoing investigation. In addition to the already-known customer names, card numbers, expiration dates and the CVV three-digit security codes that were stolen, Target said the new information included in the breach now includes names, mailing address, phone numbers and email address for as many as 70 million customers.

A Target spokesperson told Reuters the number of payment cards affected by the breach still stands at about 40 million, adding the new figure includes even people who didn’t swipe cards.

"I know that it is frustrating for our guests to learn that this information was taken and we are truly sorry they are having to endure this," said Gregg Steinhafel, Target’s chairman, president and chief executive officer,  in a statement. "I also want our guests to know that understanding and sharing the facts related to this incident is important to me and the entire Target team."
The retailer said its customers will not be on the hook for any fraudulent charges that result from the data breach, and it will offer one year of free credit monitoring and identity theft protection to all guests who shopped in the retailer’s U.S. stores. Those who wish to take part in the program have three months to enroll. Target said it will release details for enrollment will be released next week, and reminded shoppers who were affected to visit www.target.com/databreach for additional information and resources.
Watch: Target Breach Paves Way to Identity Theft
Target confirmed in mid-December unauthorized access to its in-store customers’ credit and debit card data between Nov. 27 and December 15 – the busiest shopping time of the year. At that point, the retailer said 40 million of its customers were affected. The breach – now at 70 million – is the second-biggest in history against a U.S. store, behind the 2007 data theft from TJX Group (TJX) of 90 million credit card numbers used over 18 months.
Minneapolis-based Target has 1,797 retail locations in the U.S. with 124 stores in Canada, but also announced plans to shutter eight of its domestic locations in Nevada, Georgia, Tennessee, Ohio, and Florida in May.
In addition to the newest breach developments, Target on Friday cut its fourth quarter adjusted profit outlook to $1.20–$1.30 a share from $1.50 - $1.60. Wall Street analysts expected 4Q EPS to come in at $1.24, according to a Thomson Reuters poll. It also noted it foresees a 2.5% decline in fourth-quarter comparable sales, versus previous guidance for flat comp sales.
Watch: What's Next for Target?
In its updated guidance, the company said it expects stronger-than-expected 4Q sales prior to the data breech, and a 2% - 6% decline in comp sales for the rest of the quarter.
John Mulligan, executive vice president and chief financial officer at Target, said though the top priority is taking care of the company’s customers, it’s also focused on numbers.
“We remain keenly focused on driving profitable top-line growth and investing our resources to deliver superior financial results over time. While we are disappointed in our 2013 performance, we continue to manage our business with great discipline and leverage our expense optimization efforts to reinvest in multichannel initiatives that generate long-term value for our shareholders," he said.
Target shares eased 1% Friday morning.


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