March 17, 2008

Data thieves steal credit card data from supermarket chain

The thieves broke into computers at supermarket chains Hannaford Brothers and Sweetbay, stealing an estimated 4.2 million credit and debit card numbers

Data thieves broke into computers at supermarket chains Hannaford Brothers and Sweetbay, stealing an estimated 4.2 million credit and debit card numbers, Hannaford said Monday.

"The stolen data was limited to credit and debit card numbers and expiration dates, and was illegally accessed from our computer systems during transmission of card authorization," said Hannaford CEO Ron Hodge, in a statement posted to the company's Web site.

Hannaford became aware of the theft on Feb. 27 following reports of suspicious credit card activity. The crime, which occurred some time between December and March, is one of the largest reported data thefts from a retailer in U.S. history.

"Somebody hacked into their system," said Mark Walker, vice president and counsel with the Maine Bankers Association, which started informing its 15 member banks of the breach last Friday.

Although only credit and debit card numbers were stolen -- not names or addresses -- Walker said that some cases of identity theft had been associated with the incident.

The Associated Press reported Monday that more than 1,800 cases of fraud had been linked to the theft, which affects 4.2 million credit and debit card numbers.

That's far fewer account numbers than in the nation's largest retail data theft. In 2005, hackers gained access to computer systems at Massachusetts-based TJX Companies, owners of T.J.Maxx, Marshalls and Bob's Stores. That breach affected more than 94 million credit and debit card accounts.

Hannaford is owned by Belgian supermarket giant Delhaize Group, which operates about 1,500 stores in the eastern U.S. In addition to Hannaford Brothers, it owns Food Lion, Bloom, Bottom Dollar, Harveys, Kash n' Karry, and Sweetbay grocery stores.

Hannaford stores in New England and New York state were hit with the theft, as were the company's Sweetbay stores in Florida, according to the Hannaford Web site. The company warned that some independent retail locations in the Northeast that carry Hannaford products were also affected.

Close to 70 Massachusetts banks have been contacted by Visa and MasterCard about the incident, which occurred between December and March, the Massachusetts Bankers Association (MBA) said Monday in a statement.

"The MBA estimates that hundreds of thousands of credit and debit cards owned by consumers in Massachusetts and northern New England states could be affected, and is urging consumers to monitor their accounts," the bankers association said.

MasterCard characterized the incident as a "potential security breach" and issued a statement saying that the matter is being investigated by law enforcement. Because of the ongoing investigation, however, the credit card company declined to provide additional details.

A Secret Service spokesman confirmed Monday that his agency, which pursues financial crimes, is investigating.

Delhaize and Hannaford representatives did not return telephone calls and e-mails seeking comment on Monday. On its Web site, Hannaford is advising customers looking for help with the matter to call its support line at 1-866-591-4580.

Because Hannaford does not associate addresses or names with its credit card numbers, it is unable to notify those who have had their credit card numbers compromised, the company said.

Close

On Twitter now

Security

Powered by Twitter

On Twitter now

White Paper

D2D Virtual Tape Library Replication Primer

This whitepaper explains the terminology and concepts behind Data Replication technologies and establishes some sizing rules through worked examples. Learn the new paradigm in disaster tolerance—protect data anywhere.

Download now »

White Paper

An Alternative to Virtualization for Datacenter Cost Savings

Server virtualization is a popular option for dealing with mounting datacenter costs. Another equally promising approach is the use of an Application Delivery Controller. Citrix NetScaler provides a low-cost way for organizations to reduce their server count and accrue cost savings from a reduction in space, cooling, power and personnel.

Download now »

White Paper

Why Your Firewall, VPN, and IEEE 802.11i Aren't Enough to Protect Your Network

The emergence of WLANs has created a new breed of security threats to enterprise networks.

Included in HP ProCurve WLAN solutions is security technology that alleviates threats from WLANs through:
* Monitoring wireless activity inside and out of the enterprise
* Classifying WLAN transmissions into harmful and harmless
* Preventing transmissions that pose a security threat to the enterprise network
* Locating participating devices for physical remediation

Download now »

White Paper

Bringing the Edge to the Data Center

Effectively address data protection challenges, implementing solutions that help store and protect business–critical data while cutting costs and improving efficiency and reliability.

Download now »

Sign up to receive Security Resource Alerts

Subscribe to the Security Central Newsletter

Stay informed of the latest security threats and fixes.

White paper

Log Management: How to Develop the Right Strategy for Business and Compliance

This white paper provides guidance on how to develop a strategic approach to managing and monitoring logs, a key function required for compliance with many regulatory mandates and a critical defense against security threats.

Download now! »

White paper

The Essential Series: Security Information Management

Learn about the processes and technologies that support security information management (SIM) operations, as well as the business case for SIM. The series examines different options for implementing SIM and gives you evaluation criteria for selecting the best option for your organization.

Download now! »

White paper

Aberdeen: Choosing and Consuming Managed Security Services

Learn the strategies, actions, and capabilities that Best-in-Class organizations employ and technologies they choose to obtain superior performance against various security performance metrics. This report provides guidelines for identifying which security solutions to consume as a MSS and defines best practices for choosing and managing MSSPs.

Download now! »
©1994-2009 Infoworld, Inc.