Target is going to fight credit card fraud with chip-enabled smart cards starting in 2015
Target Corporation is going to accelerate a program that involves credit card security in retail stores. Target chief financial officer John Mulligan said that the company is going to utilize chip-enabled smart cards and will roll out the technology in stores by early 2015, which would be around 6 months ahead of plans.
The smart-cards would encrypt point-of-sale data and would make credit card numbers useless if stolen. Smart cards are not popular in the U.S., but it has helped lower credit card number theft in Canada and the U.K. Last year, around 40 million credit and debt cards were stolen from Target due to a security breach. Around 70 million records that included customer mailing addresses and phone numbers were also taken.
This information was taken due to a vulnerability that was exploited in Target’s point-of-sale registers through malware. Target offered affected customers one free year of credit card monitoring. Target will be spending around $100 million on upgrading the technology as Target’s card readers and REDcard credit and debit cards will be updated in the process.