Target Security Breach Analysis
As Target continues to respond to the security breach that has now been estimated to affect up to 110 million people by NBC News.com, analysts continue to zero in on the statements and actions by CEO, Gregg Steinhafel. And positively so. In the Wall Street Journal article titled, “Target Tried Antitheft Cards,” authors Paul Ziobro and Robin Sidel highlight statements now being made by Steinhafel and actions taken in the past concerning chip-based credit cards. Although the article states that Target pulled the plug on a $40 million, three-year program proposed to better protect shoppers a decade ago, it is apparent that Target may not be to blame.
Pointing to “backward U.S. technology,” Ziobro and Sidel reveal a long-standing issue between the financial industry and retailers that has slowed progression on chip cards. Because these cards are widely used in Europe and Canada, the U.S. has become the preferred target for criminal hackers, according to the authors. As a result, “the breaches keep coming,” and a computer-based attack experienced by Neiman Marcus over the holidays as well is used as further evidence of the widespread problem at hand.
Overall “Target Tried Antitheft Cards” is neutral to positive coverage for the company. Although the authors of this article gathered information from a number of sources, it is clear that a lot of their information came directly from Target. Quotes from Gregg Steinhafel and CFO, John Mulligan are included that point to industry lag as the reason Target did not move forward with their chip-based credit card program. In this way, Target has drawn attention to a larger issue at hand. (Note: It is important to point out that Steinhafel had released statements expressing regret, plans for resolution, reform and restitution prior. Target did not simply attempt to shift blame.)
It seems Target now has the opportunity to lead the conversation about better protecting shoppers. Because Target has
Pointing to “backward U.S. technology,” Ziobro and Sidel reveal a long-standing issue between the financial industry and retailers that has slowed progression on chip cards. Because these cards are widely used in Europe and Canada, the U.S. has become the preferred target for criminal hackers, according to the authors. As a result, “the breaches keep coming,” and a computer-based attack experienced by Neiman Marcus over the holidays as well is used as further evidence of the widespread problem at hand.
Overall “Target Tried Antitheft Cards” is neutral to positive coverage for the company. Although the authors of this article gathered information from a number of sources, it is clear that a lot of their information came directly from Target. Quotes from Gregg Steinhafel and CFO, John Mulligan are included that point to industry lag as the reason Target did not move forward with their chip-based credit card program. In this way, Target has drawn attention to a larger issue at hand. (Note: It is important to point out that Steinhafel had released statements expressing regret, plans for resolution, reform and restitution prior. Target did not simply attempt to shift blame.)
It seems Target now has the opportunity to lead the conversation about better protecting shoppers. Because Target has