News

Michael’s craft stores confirm data breach

Michael’s craft stores confirm data breach

DATA BREACH:Michaels Stores said the breach, which took place between May 8, 2013 and Jan. 27, 2014, may have affected about 2.6 million cards, or about 7 percent of payment cards used at its stores during the period. Photo: Reuters

(Reuters) – Michaels Stores Inc, the biggest U.S. arts and crafts retailer, on Thursday confirmed that there was a security breach at certain systems that process payment cards at its U.S. stores and that of its unit, Aaron Brothers.

The company said in January that it was working with federal law enforcement officials to investigate a possible data breach.

Michaels Stores said the breach, which took place between May 8, 2013 and Jan. 27, 2014, may have affected about 2.6 million cards, or about 7 percent of payment cards used at its stores during the period.

The company said about 400,000 cards were potentially impacted at its Aaron Brothers unit by the breach, which occurred between June 26, 2013 and Feb. 27, 2014.

There was no evidence that data such as customers’ name or personal identification number were at risk, Michaels Stores said in a statement.

This is the second known data breach since 2011 at Michaels Stores.

Michaels Stores, whose major investors are Blackstone Group LP and Bain Capital LP, said cyber security firms it hired found that malware not encountered previously had been used in the latest attack.

The company said it was working with law enforcement authorities, banks and payment processors, and that the malware no longer presents a threat.

Michaels Stores, which resubmitted its IPO documents late last month following a restructuring, is the latest U.S. retailer whose systems have been breached.

Last year, the No.3 U.S. retailer Target Corp suffered a massive security breach that resulted in the theft of some 70 million customer records.

Reuters reported in January that smaller breaches on at least three other well-known U.S. retailers took place and were conducted using similar techniques as the one on Target.

U.S. retailers are planning to form an industry group for collecting and sharing intelligence in a bid to prevent future attacks.

Michaels Stores, which owns several private brands such as Recollections, Artist’s Loft and Loops & Threads, competes with Hooby Lobby Stores Inc, Jo-Ann Stores Inc and Wal-Mart Stores Inc.

(Reporting By Lehar Maan and Devika Krishna Kumar in Bangalore; Editing by Sriraj Kalluvila)

Recent Headlines

in Entertainment

‘The Best Man’ set for ‘threequel’

bestman

The new film appears to pick up from news Howard's character drops at the end of the "The Best Man Holiday," which was released last November.

in Lifestyle

Target hopes to make shopping a ‘snap’

target

The In a Snap app will let you scan items in magazines and add them to your shopping cart.

in Entertainment

Will Ferrell bringing ‘Manimal’ to big screen

willferrell

The "Anchorman" star and his producing partner are planning another feature film.

in Trending, Viral Videos

TODAY’S MUST SEE: Dancing Grandpa is the best Grandpa

grandpa

This man might need two canes to walk, but he doesn't need any help to dance!

in Entertainment

Batman Day honors 75 years of the Dark Knight

batman

DC Comics marks 75 years of Gotham's top crime-fighter today.