Essays on Credit Card Breach at Target Corporation Case Study

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The paper 'Credit Card Breach at Target Corporation" is a good example of a management case study. Target Corporation is a business company based in United States of America (USA) and Canada operating in providing essential and merchandized beautification products at a discounted price. Since its founding in 1902 and establishment of its first store in Minnesota, the corporation continues to pride itself of outstanding services especially in the USA, receiving a ranking of the second position after the largest, Walmart stores. Through the enactment of the Canadian subsidiary program, the corporation spread to Canada in 2013 operating in 127 locations.

Over time, the activities of the corporation rose to 133 stores in Canada until late in 2013 when it announced the closure of its services in the region (Elgin, 2014, par. 5). By the onset of April 2015, the last store in Canada closed contributing to approximately 17, 000 individuals losing their jobs. Target Corporation faced a great incident in 2013 that led to a loss of trust in its security regarding online shopping. The shoppers received the unwelcoming information on December 2013 of an incident that led to the stealing of the 40 million Target shoppers’ credit cards occurred between November 27 and December 15.

The hackers accessed the data on the point of sale (POS) systems. Later on, Target confirmed the incidence with the number rising to 70 million individuals believed to have lost private data to the hackers (Bluepassport, 2014). Regardless of constant reporting of customers who suffered from the breach, the managerial team of the corporation did not take any serious action until contacted by the Department of Justice concerning the incident.

Target did not receive any alert from their security system. Attempts by various adversaries to access and retrieve their credit card data from the corporation’ s system caused a breakdown in detection contributing to the loss of more data.   Target Corporation suffered from one of the worst incidents in December 2013, which totally affected their operations with an approximated number of 10 million customers losing their shares. The corporation faced a data breach. In the event, business and government agencies lost their records from hacking and security mishaps (Alexander, 2004, 122).

During the period, an estimated number of 110 customers compromised their payment cards affecting the pertinent operational structures of the corporation. The breach occurred during the annually held month of thanksgiving, therefore, a greater population suffered the consequence. The hackers extracted all the essential data from credit card swipe machines in Target’ s systems (D'Innocenzio, 2014, par. 2). In fact, the hackers even extracted the encrypted Pin numbers from every debit card. The effect hit a greater population making the customers lose trust in their services especially their electronic data security. The occurrence of the ordeal especially corporate system hacking created a negative perception of the electronic system of operational business to the extent of affecting the business performance of other organisations too.

For instance, visa recorded a decline in its income in the subsequent year prompting a hit by the reluctance of people to operate on digital platforms. Different records later showed that the software that hacked the POS system of the Target Corporation was commercially accessible in Cybercrime forums (Economic Club, 2013). People questioned the essence of such forums in the country seeking compensation.

This greatly affected the corporation making it bankrupt in the end.

References

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Bluepassport. (2014, April 25). Target Corporation - MGMT 7160 Capstone Project 2014 [Video file]. Retrieved from https://www.youtube.com/watch?v=zxfSpmaX7Ks

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Capacio, S. (2014, March 13). Target breach: Security warning ignored before heist. Retrieved from myFOX9.COM: http://www.myfoxtwincities.com/story/24968693/report-target-ignored-signs-ofbreach

D'Innocenzio, A. (2014, 2 18). Target data breach cost banks more than $200 million. Retrieved from THE HUFFINGTON POST: http://www.huffingtonpost.com/2014/02/18/target-data-breachcost_n_4810787.html

Economic Club. (2013, April 10). Gregg Steinhafel - Chairman, President & CEO Target Corporation [Video file]. Retrieved from https://www.youtube.com/watch?v=McMkjbpjpOg

Elgin, B. (2014, March 13). Missed alarms and 40 million stolen credit card numbers: How target blew It. Retrieved from Bloomberg Businessweek: http://www.businessweek.com/articles/2014-03-13/target-missed-alarms-in-epichack-of-credit-card-data

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