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    All Forums | Technology

    Malware Cited in Supermarket Data Breach

    Lippsman
    chilitokid
    kevk87
    jackjaffee
    cpfs146
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    Posts: 7
     
    Lippsman
    Lippsman
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    Posted: Mar. 29, 2008 - 10:29 AM ET #1

    Unauthorized software that was secretly installed on servers in Hannaford Bros. Co.'s supermarkets across the Northeast and in Florida enabled the massive data breach that compromised up to 4.2 million credit and debit cards, the company said Friday.

    The Scarborough, Maine-based grocer confirmed a report in The Boston Globe that it told Massachusetts regulators this week about the link between the breach and the illicit programs, known as "malware."

    The company doesn't know how the malware — short for malicious software — got onto nearly all its 271 stores' servers, Hannaford spokeswoman Carol Eleazer said.

    "Virtually everything is possible," she said. "There are still many, many aspects that we don't totally understand."

    At least 1,800 cases of fraud have been linked to the data breach, with unauthorized charges showing up as far afield as Mexico, Italy and Bulgaria.

    The breach has prompted concern in the industry because it appeared to be the first large-scale theft of credit and debit card numbers while the information was in transit.

    The usual mode of attack targets data sitting in databases, as in the record-setting theft of information from Massachusetts-based TJX Cos. involving least 45 million card numbers belonging to customers of T.J. Maxx and Marshalls stores.

    TJX Cos. agreed to regular external security audits in a settlement this week with the Federal Trade Commission regarding the breach, which occurred in 2005 and 2006. The FTC lacks the authority to impose fines.

    Sherry Lang, TJX's senior vice president for investor and public relations, said the company disagreed with the FTC's allegations that it didn't properly protect customer data. But she said the settlement "is consistent with the agreements between the FTC and other retailers that have been victimized by cyber crime."

    A federal consumer lawsuit against TJX is pending in Boston.

    Hannaford has said its breach, which occurred between Dec. 7 and March 10, allowed credit and debit card numbers to be stolen as shoppers swiped their cards at checkout line machines and the information was transmitted to banks for approval.

    The malware turned up in all Hannaford stores in New England and New York and in most of the company's affiliated Sweetbay stores in Florida, Eleazer said.

    The finding was revealed in a letter from Hannaford general counsel Emily Dickinson to Massachusetts Attorney General Martha Coakley and Gov. Deval Patrick's Office of Consumer Affairs and Business Regulation.

    Eleazer declined to release a copy.

    In Maine, Assistant Attorney General Linda Conti — who said she spoke with investigators — said the breach began as a single message sent to a single location that was then sent to multiple locations. She declined to discuss specifics.

    Conti said her office is investigating whether the company did everything in its power to protect consumers.

    Data from swiped cards would flow from the cash register to the store server, then perhaps to a regional server before being transmitted to a credit center for approval, said Avivah Litan, security analyst at Gartner Inc.

    "It sounds like they were snooping on that traffic with malware," she said.

    The involvement of the software had not been previously disclosed "because of the confidential nature of the investigation," Eleazer said. The breach remains under investigation by the U.S. Secret Service.

    Even while the Hannaford hack was still going on last month, the company was found to be in compliance with security standards required by the Payment Card Industry, a coalition founded by credit card companies.

    Reply
    To remove first post, remove entire topic.
    Unauthorized software that was secretly installed on servers in Hannaford Bros. Co.'s supermarkets across the Northeast and in Florida enabled the massive data breach that compromised up to 4.2 million credit and debit cards, the company said Friday.

    The Scarborough, Maine-based grocer confirmed a report in The Boston Globe that it told Massachusetts regulators this week about the link between the breach and the illicit programs, known as "malware."

    The company doesn't know how the malware — short for malicious software — got onto nearly all its 271 stores' servers, Hannaford spokeswoman Carol Eleazer said.

    "Virtually everything is possible," she said. "There are still many, many aspects that we don't totally understand."

    At least 1,800 cases of fraud have been linked to the data breach, with unauthorized charges showing up as far afield as Mexico, Italy and Bulgaria.

    The breach has prompted concern in the industry because it appeared to be the first large-scale theft of credit and debit card numbers while the information was in transit.

    The usual mode of attack targets data sitting in databases, as in the record-setting theft of information from Massachusetts-based TJX Cos. involving least 45 million card numbers belonging to customers of T.J. Maxx and Marshalls stores.

    TJX Cos. agreed to regular external security audits in a settlement this week with the Federal Trade Commission regarding the breach, which occurred in 2005 and 2006. The FTC lacks the authority to impose fines.

    Sherry Lang, TJX's senior vice president for investor and public relations, said the company disagreed with the FTC's allegations that it didn't properly protect customer data. But she said the settlement "is consistent with the agreements between the FTC and other retailers that have been victimized by cyber crime."

    A federal consumer lawsuit against TJX is pending in Boston.

    Hannaford has said its breach, which occurred between Dec. 7 and March 10, allowed credit and debit card numbers to be stolen as shoppers swiped their cards at checkout line machines and the information was transmitted to banks for approval.

    The malware turned up in all Hannaford stores in New England and New York and in most of the company's affiliated Sweetbay stores in Florida, Eleazer said.

    The finding was revealed in a letter from Hannaford general counsel Emily Dickinson to Massachusetts Attorney General Martha Coakley and Gov. Deval Patrick's Office of Consumer Affairs and Business Regulation.

    Eleazer declined to release a copy.

    In Maine, Assistant Attorney General Linda Conti — who said she spoke with investigators — said the breach began as a single message sent to a single location that was then sent to multiple locations. She declined to discuss specifics.

    Conti said her office is investigating whether the company did everything in its power to protect consumers.

    Data from swiped cards would flow from the cash register to the store server, then perhaps to a regional server before being transmitted to a credit center for approval, said Avivah Litan, security analyst at Gartner Inc.

    "It sounds like they were snooping on that traffic with malware," she said.

    The involvement of the software had not been previously disclosed "because of the confidential nature of the investigation," Eleazer said. The breach remains under investigation by the U.S. Secret Service.

    Even while the Hannaford hack was still going on last month, the company was found to be in compliance with security standards required by the Payment Card Industry, a coalition founded by credit card companies.

     
    chilitokid
    chilitokid
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    Posts: 10399
    Posted: Mar. 29, 2008 - 6:29 PM ET #2

    Question is did the malware get on the servers via email? Did an employee install it? Or was it transferred some other way.
    I'm glad I cut up my credit cards when the banks decided to increase my interest rates when I made my payments on time.
    This process is still in its infancy and there are some very smart computer hackers from out of the country who can wreak havoc on POS systems from 3000 miles away. Cyber crime
    Reply
    Question is did the malware get on the servers via email? Did an employee install it? Or was it transferred some other way.
    I'm glad I cut up my credit cards when the banks decided to increase my interest rates when I made my payments on time.
    This process is still in its infancy and there are some very smart computer hackers from out of the country who can wreak havoc on POS systems from 3000 miles away. Cyber crime
     
    kevk87
    kevk87
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    Posts: 742
    Posted: Mar. 30, 2008 - 2:36 AM ET #3

    its probably the companies fault for not securing or updating their wireless network (sounds like a case of sql injection or buffer overflowing)
    https://youtube.com/watch?v=MxG2J3bf1BQ
    Reply
    its probably the companies fault for not securing or updating their wireless network (sounds like a case of sql injection or buffer overflowing)
    https://youtube.com/watch?v=MxG2J3bf1BQ
     
    Lippsman
    Lippsman
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    Posts: 87445
    Posted: Mar. 30, 2008 - 11:42 PM ET #4

    Buffer overflowing is the usual way to get in.  Also we don't know if they had all the patched for thier software installed. It amazes me the really big companies we will come in and do work for don't have any patches or updates in the past few years.
     
    Even some of the bigges like supermarkets are the same way.
    Reply
    Buffer overflowing is the usual way to get in.  Also we don't know if they had all the patched for thier software installed. It amazes me the really big companies we will come in and do work for don't have any patches or updates in the past few years.
     
    Even some of the bigges like supermarkets are the same way.
     
    jackjaffee
    jackjaffee
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    Joined: Apr, 2005
    Posts: 8856
    Posted: Mar. 31, 2008 - 3:15 AM ET #5

    I read a different article where they were wondering how carefully they were watching their logs and traffic and should've noticed an unfamiliar IP address getting a lot of traffic being sent from their servers.
    Reply
    I read a different article where they were wondering how carefully they were watching their logs and traffic and should've noticed an unfamiliar IP address getting a lot of traffic being sent from their servers.
     
    kevk87
    kevk87
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    Posts: 742
    Posted: Mar. 31, 2008 - 6:14 AM ET #6

    The company should at least notice if there network was breached with a port scanner (unless the software was not updated).
    Reply
    The company should at least notice if there network was breached with a port scanner (unless the software was not updated).
     
     
    cpfs146
    cpfs146
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    Posts: 1165
    Posted: Mar. 31, 2008 - 10:24 PM ET #7

    whats next!
    Reply
    whats next!
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