Target to implement chip-based credit cards after massive security breach

Print
Email
|

by KMOV.com Staff

KMOV.com

Posted on April 30, 2014 at 7:51 AM

Updated Wednesday, Apr 30 at 8:51 AM

(KMOV.com) -- Target is overhauling its security system, months after a massive pre-Christmas data breach affected 40 million debit and credit card users.

The company plans to spend $100 million on new chip-based credit card technology that will bring peace of mind when shoppers swipe their card at checkout.

According to the New York Times, Target’s new debit and credit card technology is widely used in Europe and considered to be much more secure than most cards used in the United States.

The majority of cards in the U.S. rely on magnetic strips. The cards Target will offer are harder to duplicate and the pin numbers are more difficult for thieves to crack.

The retail giant also appointed a former member of the Department of Homeland Security to oversee the company’s technology team and data security.

If customer security wasn’t enough of a reason to make these changes, the decision should also help Target’s earnings.

Its fourth-quarter profits were down 46 percent compared with the same period last year after the security breach.

 

Print
Email
|