Essays on Target Corporation in the United States That Experienced the Data Breach Case Study

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The paper 'Target Corporation in the United States That Experienced the Data Breach" is a good example of a business case study. There are several disasters affecting most businesses globally almost on a daily basis. However, it is important to note these incidents are either naturally occurring or induced by human activities. With the rising use of technology and its advancement, most businesses are shifting to technological uses to reduce the management cost without considering the underlying factors associated with technology. Although scientists and researchers have been able to incorporate technology and business management, it is important to note that several malpractices have also been able to erupt with most businesses exposed to hacking activities.

With the introduction of e-commerce, most corporate companies intend to use internet facilities such as website, communication media, and emails to reach clients (Weise n. p). It is from such background that the research would be focusing on Target Corporation, which experienced the data breach. The breach led to losses of organizational resources as well as those of the clients. Moreover, the incidents greatly affected the corporation compelling it to compensate the affected clients. Organizational Description Target Corporation is a discount retailer in the United States with its headquarter in Minneapolis, Minnesota.

The Corporation is the second-largest in the country after Walmart reflecting the number of clients that it serves. Through the years, the corporation has experienced growth and change of management to an extent that as of 2015, it operates in about 1,801 across the United States (Businessweek. com n. p). Furthermore, the retail operates in several formats including the hypermarket SuperTarget, discount store Target, and other smaller formats previously known as CityTarget and TargetExpress before undergoing Target branding.

The Corporation manages more than 40 million credit cards owned by the customers (Target Pressroom n. p). Data breach in the corporation In the mid-December of 2013, the hackers managed to find their ways into the organizational system, gained access to the unique credit and debit card numbers of the customers within the database (Ax n. p). Some of the clients’ information retrieved from the system include the names, mailing addresses, phone numbers, and email addresses. The incident affected as many as 40 million credits and debit card accounts.

However, the number of people affected increased to 70 million when the organization took into consideration the other personal information retrieved from the system. Unfortunately, the affected groups mainly included holiday shoppers from November 27 to December 28 of 2013. According to the estimates from the corporation, about 42 million clients had information concerning the credit and debit cards retrieved with areas experiencing much of the impact include California, Texas, and Florida. More importantly, the hackers were able to retrieve the card verification value or most debit and credit cards giving them access to the accounts of the clients. The use of malicious software is also increasing with more hackers sending it the management system of the target institution.

Probably, this was the method used to hack the system of the corporation. The hackers installed the malware into the payment system in the self-checkout lanes of the corporation (CBS Minnesota n. p). The incident saw the organizational Chief Executive Officer Gregg Steinhafel resigning over the mounting pressure as people demanded their compensation. Several reports indicate that the hackers took into the system for about five months with the organization noticing that it had lost its financial system.

Between November 27 and December 15 of 2013, reports indicate that the 40 million customers who were using the credit cards and debit cards in the United States had some of their personal information retrieved from the system. On December 13, the management of the corporation met with the United States department of justice to report the malpractices that were taking place in the corporation. However, it took the organization much time to notice and accept the hacking activities (McGinty n. p).

As a result, it hired the third party to conduct a forensic audit of the hacking claims within the corporation. Upon receiving the results, it was clear that the criminals infiltrated the system. Furthermore, the report indicated that they installed the malware program into the networks on the point of sale and stole the payment credit and debit cards of the customers. The corporation managed to remove all the malware virtually from its stores, but the public remained unaware of the breach.

KrebsOnSecurity, data and security blog, managed to make the first report on the security breach, which saw The Secret Service investigating the matter on December 18, 2013. The following day, after KrebsOnSecurity reported the incident, the corporation publicly acknowledged the breach adding that it was undertaking a serious investigation on how the criminal got into the system. Moreover, the corporation announced that it was also investigating the accessed information such as debit and credit card numbers, card expiry dates, and those cards with no indication of interference with a personal identification number (PIN) (CNNMoney n. p).

The announcement made the corporation undergo pressure from the customers on their website and customer service hotlines.

Works Cited

Ax, Joseph. "U.S. Judge Certifies Class Action over Target Corp Data Breach." Reuters. Reuters, 15 Sept. 2015. Web. 18 Oct. 2015. .

Businessweek.com. "Why the Target Data Hack Is Just the Beginning - Businessweek." Businessweek.com. Businessweek.com, 16 Jan. 2014. Web. 18 Oct. 2015. .

CBS Minnesota. "Grim Tuesday At Target Corp. As 1,700 Lose Their Jobs « CBS Minnesota." CBS Minnesota. CBS Minnesota, 10 Mar. 2015. Web. 18 Oct. 2015. .

Clark, Meagan. "Timeline of Target's Data Breach And Aftermath: How Cybertheft Snowballed For The Giant Retailer." International Business Times. International Business Times, 5 May 2014. Web. 16 Oct. 2015. .

CNNMoney. "Target Will Pay Hack Victims $10 Million." CNNMoney. CNNMoney, 19 Mar. 2015. Web. 18 Oct. 2015. .

Gilbert, Sara. The Story of Target. Mankato: Creative Education, 2015. Print.

Kedmey, Dan. "Target Expects $148 Million Loss From Data Breach." TIME.com. TIME.com, 6 Aug. 2014. Web. 18 Oct. 2015. .

KrebsOnSecurity. "The Target Breach, By the Numbers — Krebs on Security." Krebs on Security. Krebs on Security, 14 May 2014. Web. 18 Oct. 2015. .

Mariotti, Steve, and Caroline Glackin. Entrepreneurship: Starting and Operating a Small Business. Upper Saddle River: Pearson/Prentice Hall, 2013. Print.

McGinty, Kevin M. "Target Data Breach Price Tag: $252 Million and Counting." Privacy & Security Matters. Privacy & Security Matters, 26 Feb. 2015. Web. 18 Oct. 2015. .

Riley, Michael, Ben Elgin, Dune Lawrence, and Carol Matlack. "Target Missed Warnings in Epic Hack of Credit Card Data - Businessweek." Businessweek.com. Businessweek.com, 13 Mar. 2014. Web. 18 Oct. 2015. .

Shaw, Hollie. "Target Corp to Exit Canada After Racking Up Billions in Losses." Financial Post. Financial Post, 15 Jan. 2015. Web. 18 Oct. 2015. .

Target Pressroom. "Target Confirms Unauthorized Access to Payment Card Data in U.S. Stores | Target Corporate." Target Pressroom. Target Pressroom, 19 Dec. 2013. Web. 18 Oct. 2015. .

Townsend, Matt. "Target ‘lost’ Before Data Breach Occurred." Las Vegas Review-Journal. Las Vegas Review-Journal, 31 May 2014. Web. 18 Oct. 2015. .

Weise, Karen. "Sally Beauty Data Hack: Another Day, Another Retailer in a Massive Credit Card Breach." Businessweek.com. Businessweek, 5 Mar. 2014. Web. 18 Oct. 2015. .

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