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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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