In the aftermath of the massive security breach over last
year's holiday season,
) is now tightening its cyber security. The company will switch
over to chip-and-PIN technology across its REDcard portfolio in
) and has also appointed Bob DeRodes as its new Chief Information
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Target has partnered with MasterCard to bring in newer and more
secure credit and debit cards in place of the cards using
vulnerable magnetic strip technology. The new cards have digital
chips to contain data, which generate a new code after every use
and thus makes hacking difficult. The company aims to covert
entire REDcard portfolio to chip-and-PIN technology by early
As a part of the endeavor, Target has already invested $100
million for the conversion as well as installment of support
software at all its stores. The company is likely to complete the
installation of the support software by Sep 2014, six months
Further, effective May 5, 2014, Bob DeRodes will take over
responsibilities of Target's technology team and operations with
special focus on the on going security up grade efforts. He will
also be responsible for charting out a long-term digital and
information technology blueprint for the retailer. Notably,
DeRodes has served as a senior information technology adviser for
the Center for CIO Leadership, U.S. Secretary of Defense, U.S.
Department of Homeland Security and the U.S. Department of
Target is also looking for suitable candidates for the position
of chief information security officer and a chief compliance
Target faced its worst security breach when information related
to credit and debit card data of approximately 70 million
customers were hacked. The theft occurred during the holiday
season, from a day before Thanksgiving up to Dec 15. The company
publicly acknowledged the breach four days later on Dec 19, 2013.
As a part of the ongoing inquiry, Target had disclosed that the
data theft included names, mailing and email addresses and phone
numbers. Moreover, the company had extended help to aggrieved
customers by offering one year of complimentary credit monitoring
and identity theft safeguard.
The biggest security breach in U.S history was detected in 2007
when the leading off-price retailer of apparel and home fashions,
The TJX Companies, Inc.
) reported data theft involving nearly 90 million credit and
debit cards over a span of about one and a half years.
Currently, Target has a Zacks Rank #3 (Hold). Another retail
stock worth investment is
), which sports a Zacks Rank #1 (Strong Buy).