Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

Target's holiday hijacked by hack

Thursday, Dec 19, 2013 - 02:09

Dec. 19 - Target's security breach came at the worst possible time- taking its focus away from the final holiday sales push- and into a damage control mode. Bobbi Rebell reports.

▲ Hide Transcript

View Transcript

After hackers stole data from up to 40 million customers credit and debit cards - Target is in damage control mode- overshadowing its final sales push ahead of Christmas. Morningstar's Ken Perkins: SOUNDBITE: KEN PERKINS, EQUITY ANALYST, MORNINGSTAR (ENGLISH) SAYING: "This is not what the company was hoping for. This is a time where Christmas is always important, the holiday season, and for retailers and especially this year since there are fewer days this year than last year. And so every day counts that much more this year, and I think rather than focus on getting customers in the door the company is on damage control mode at this point." And the damage could be tremendous. In terms of the speed at which the hackers were able to access large numbers of credit cards- the data theft was unprecedented. The operation was carried out over just 19 days starting the day before Thanksgiving. While they discovered the breach on Sunday- it was not until Thursday that Target warned customers in an alert on its website that the criminals had stolen names, payment card numbers, expiration dates and security codes. And investigators still don't know how it was carried out- and according to a person familiar with the investigation- Target did not detect the attack on its own. Perhaps most vulnerable says Perkins- is Target's REDcard private label 5 percent discount debit and credit cards. REDcards were used in 20 percent of sales last month- part of its big push for loyalty. SOUNDBITE: KEN PERKINS, EQUITY ANALYST, MORNINGSTAR (ENGLISH) SAYING: "Target's long term strategy is to try to increase the penetration of its REDcard cardholders and so with this sort of breach it could take the marginal customer out of consideration for those looking to get a REDcard and ultimately purchase more with Target and in retail it's so competitive that customer loyalty is important and if Target loses that I think achieving the company's long term objectives could be even more difficult." Beyond lost sales- Target could also be on the hook for any fraud on the cards- because card issuers can fine Target for non-compliance with payment card security standards. Target's online business was not affected.

Target's holiday hijacked by hack

Thursday, Dec 19, 2013 - 02:09

Most Popular »

Money »

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

Markets cheer Russia's Ukraine exit Markets cheer Russia's Ukraine exit

Fri, Aug 08, 2014 - (1:50)

Russia, Iraq push Dow to three-month low Russia, Iraq push Dow to three-month low

Thu, Aug 07, 2014 - (2:27)

Wall Street gains but telecom disconnected Wall Street gains but telecom disconnected

Wed, Aug 06, 2014 - (2:28)

Stocks zapped by energy weakness Stocks zapped by energy weakness

Tue, Aug 05, 2014 - (2:46)

Stocks recover with refocus on earnings Stocks recover with refocus on earnings

Mon, Aug 04, 2014 - (2:19)

The S&P 500 suffers worst week in 2 years The S&P 500 suffers worst week in 2 years

Fri, Aug 01, 2014 - (2:41)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)