Target Gets Targeted
The Market Ticker - Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Sarah's Resources You Should See
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. For investment, legal or other professional advice specific to your situation contact a licensed professional in your jurisdiction.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility; author(s) may have positions in securities or firms mentioned and have no duty to disclose same.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2013-12-19 07:52 by Karl Denninger
in Consumer , 186 references Ignore this thread
Target Gets Targeted

When does someone get held accountable for this?

MINNEAPOLIS – Target says that about 40 million credit and debit card accounts may have been affected by a data breach that occurred just as the holiday shopping season shifted into high gear.

The chain said that customers who made purchases using their cards at its U.S. stores between Nov. 27 and Dec. 15 may have been exposed.

It appears that this "breach" came from rogue code that got loaded into the swipe terminals at the checkout lanes nationwide according to some reports in the media.

I have held a merchant account (to take credit cards) in one form or another for a very long time, going back to the 1980s when most merchants (including myself) transacted using paper impressions of credit cards.  It has always, at least in theory and contract, been the merchant's responsibility to protect against this sort of thing and the merchant agreements contain enormous fines for breaches.

Well?

I've never seen a major merchant either significantly fined by the card networks or had their merchant account revoked over something like this, but it does happen with smaller merchants all the time.

It should -- but it should on a non-discriminatory basis.

No, offering "credit monitoring" is not enough when this happens.  The simple fact of the matter is that strict liability is the appropriate standard; if you want my financial data, including the ability to bang my bank account (in a world of debit cards) you had damned well better be fully financially responsible for every cost I incur when you blow it.

Period.