Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Big Data
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Barnes & Noble Says Card Readers at 63 Stores Breached
Barnes & Noble Says Card Readers at 63 Stores Breached

By Jennifer LeClaire
October 24, 2012 2:05PM

    Bookmark and Share
Tampered PIN pads were discovered in Barnes & Noble stores in California, Connecticut, Florida, Illinois, Maine, New Jersey, New York, Pennsylvania and Rhode Island. Barnes & Noble said customers who swiped cards at stores in any of those states should change their PINs and review accounts for unauthorized transactions.
 


Barnes & Noble is sounding the alarm on Wednesday about a security breach. The book seller said it had detected tampering with PIN pad devices used in 63 of its stores.

After Barnes & Noble detected that one PIN pad was compromised in each of the 63 stores, it stopped using all PIN pads at nearly 700 stories across the country. The bricks-and-mortar chain also contacted federal law enforcement authorities and is working with authorities to investigate the breach.

"The tampering, which affected fewer than 1 percent of PIN pads in Barnes & Noble stores, was a sophisticated criminal effort to steal credit card information, debit card information, and debit card PIN numbers from customers who swiped their cards through PIN pads when they made purchases," the company said in a statement. "This situation involved only purchases in which a customer swiped a credit or debit card in a store using one of the compromised PIN pads."

Bugs Planted in PIN Pads

Barnes & Noble made clear that its customer database is secure. Purchases on Barnes & Noble.com, NOOK and NOOK mobile apps were not affected by the breach. The member database was also not affected, and none of the affected PIN pads was discovered at Barnes & Noble College Bookstores.

"The criminals planted bugs in the tampered PIN pad devices, allowing for the capture of credit card and PIN numbers," the company said after its internal investigation. "Barnes & Noble disconnected all PIN pads from its stores nationwide by close of business Sept. 14, and customers can securely shop with credit cards through the company's cash registers."

Tampered PIN pads were discovered in California, Connecticut, Florida, Illinois, Maine, New Jersey, New York, Pennsylvania and Rhode Island. Barnes & Noble said customers who swiped cards at stores in any of those states should change their PIN numbers, review accounts for unauthorized transactions and notify their banks immediately if they discover any unauthorized purchases or withdrawals.

Evidence of Inside Job

Gunter Ollmann, vice president of research at Damballa, said his initial investigation leads him to believe an insider was responsible. Specifically, he told us the breach appears to be a physical manipulation of the card readers in order to steal both debit card details and their accompanying personal identification numbers.

"This kind of fraud and their related tamper-resistance bypassing techniques would likely have been combated through the use of the chip and PIN technology commonly used in Europe and the Asia-Pacific," Ollman told us. "However, even these more advanced technologies have a number of flaws, but they make it considerably more difficult for criminals where it comes to cloning the victims cards and making fraudulent charges."

Based upon what Barnes & Noble has disclosed, Ollman believes the breach is an insider threat perpetrated by criminals who had physical access to the card readers. The evidence does not suggest that a batch of card readers were compromised at the manufacturer or distribution center.

"The criminals would have most likely had repeated access to the card readers -- and/or supporting computer systems -- in order to obtain the collected credentials," Ollman said. "It has been stated that only one reader per store was affected, which doesn't smell of a supply chain problem."
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Big Data
1.   SAP Taps Apigee for API Management
2.   Many Sites Are Studying Consumers
3.   Cloud Wars: AWS vs. Microsoft, IBM
4.   Watson's First Consumer-Facing Gig
5.   HP Drops $50M on Hortonworks


advertisement
Many Sites Are Studying Consumers
Facebook and OKCupid are not alone.
Average Rating:
Comcast Customer Service Fiasco
Lessons to be learned for all companies.
Average Rating:
Apple, IBM Team on Mobile Biz Apps
A match made in technology heaven.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.