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May 15, 2007

 


NEWS: TJX Thefts May have Been Via Wi-Fi

 

It seems that each passing week brings some new development in the now-epic tale of the TJX data breach that led to the biggest consumer information theft in recorded history. Last week, it came to light that the scammer or scammers (with the plural more likely) who hacked and systematically ransacked TJX’s computer network may have began their campaign by exploiting Wi-Fi technology to exploit system weaknesses at a single store. It seems that thieves may have used a telescope-like antenna aimed at St. Paul, Minnesota Marshall’s store to filch data being transmitted between hand-held price-checking devices, cash registers and the store's computers. Apparently, the success of this venture eventually guided the thieves into the heart of TJX’s central database in Framingham, Massachusetts, where they went on a binge with the identities of some 45.7 million credit and/or debit card holders, plus half-million or so customers whose data was banked after making returns without receipts. It seems like thieves used a laptop computer to store the data they stole.

The revelation is no comfort for TJX, who is currently facing multiple lawsuits from consumers and credit card lenders, as well as a potential class-action suit organized by three New England banking associations. Banks have faced even more aggravation than consumers over the issue, having to shell out heaps of money to replace cards compromised in the data breach. Now, many are looking to force TJX to pay back the costs, which many say came about due to the company’s negligence in encrypting and/or deleting customer data. Furthermore, TJX is being slammed for what many say was its reticence in revealing the pertinent details of the theft, even after they had become aware of it and were starting to uncover the extent. TJX stated in a report to the SEC that it appeared that thieves had been carrying on systematic theft of customer data for over a year and a half before the scheme was uncovered.


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