Commonwealth Journal

Community News Network

March 5, 2014

Target seeks new technology head after data breach

NEW YORK — Target Corp., still reeling from a security breach that exposed the personal information of tens of millions of customers, is seeking a new top technology executive to help prevent future attacks.

The company is searching externally for a candidate to replace Beth Jacob, who resigned Wednesday after holding the chief information officer post since 2008. The new executive will help revamp Target's information-security and compliance operations, Chief Executive Officer Gregg Steinhafel said in an emailed statement. Promontory Financial Group will advise on the overhaul, he said.

Steinhafel has been working to regain customers' loyalty after hackers stole card data and personal information from millions of shoppers during the holiday season. While Jacob shouldn't be assigned all the blame for the breach, the company needs someone with more technology expertise in the position, said Brian Yarbrough, an analyst for Edward Jones & Co.

"They really want to elevate their game here to make sure this doesn't happen again," Yarbrough, who's based in St. Louis, said in a phone interview. "They're looking for someone with the appropriate background and experience."

Jacob joined Target's Dayton department-store division in 1984 as a buyer and left two years later, according to her profile on the retailer's website. She rejoined the company in 2002 as director of guest contact centers and was promoted to vice president of guest operations, in 2006. Jacob has an undergraduate degree in retail merchandising and an MBA, both from the University of Minnesota. She couldn't immediately be reached for comment.

Target also will elevate the position of chief information- security officer and hire externally for that job, Steinhafel said.

Jacob's resignation was reported earlier Wednesday by the Associated Press.

Target said in December that credit- and debit-card data of 40 million accounts was stolen during the holiday shopping season. In January, it said that names and addresses for as many as 70 million customers were taken as well. U.S. sales after the data theft were disclosed were "meaningfully weaker," the company said in January.

The retailer wasn't alone in having its systems attacked. Luxury department-store chain Neiman Marcus Group said in January that about 1.1 million credit cards may have been compromised in a data breach. Days later, arts-and-crafts retailer Michaels Stores said some customer payment-card data may have been used fraudulently. Sears Holdings Corp. said last month that it was reviewing its systems to see whether it had been the victim of a breach.

Sally Beauty Holdings Inc., which sells hair and beauty products, said Wednesday that it detected an attempted intrusion. The company said there is no evidence any consumer or credit- card data was lost and that it is investigating the situation.

Despite the widespread coverage of the breach, Target last month posted fourth-quarter profit of 81 cents a share, topping analysts' 79-cent average estimate. The retailer spent $61 million responding to the situation last quarter, including costs to investigate the incident and offer identity-theft services to customers. Insurance covered $44 million of the tab, leaving the company with an expense of $17 million in the period.

The expenses don't include potential claims by payment-card networks for counterfeit fraud losses.

1
Text Only
Community News Network
  • Wal-Mart to cut prices more aggressively in back-to-school push

    Wal-Mart Stores plans to cut prices more aggressively during this year's back-to-school season and will add inventory to its online store as the chain battles retailers for student spending.

    July 21, 2014

  • Hospitals let patients schedule ER visits

    Three times within a week, 34-year-old Michael Granillo went to the emergency room at Northridge Hospital Medical Center in Los Angeles because of intense back pain. Each time, Granillo, who didn't have insurance, stayed for less than an hour before leaving without being seen by a doctor.

    July 21, 2014

  • Starved Pennsylvania 7-year-old weighed only 25 pounds

    A 7-year-old Pennsylvania boy authorities described as being so underweight he looked like a human skeleton has been released from the hospital.

    July 21, 2014

  • Malaysians wonder 'Why us?' after second loss of airline jet

    It was all too familiar. Grieving families rushing to airport. The flashing television graphics of a plane's last radar appearance. The uncomfortable officials before a heavy thicket of microphones.
    For many Malaysians, the disappearance of Flight 370 in March has been a long trauma from which the nation has not yet recovered.

    July 18, 2014

  • A quarter of the world's most educated people live in the 100 largest cities

    College graduates are increasingly sorting themselves into high-cost, high-amenity cities such as Washington, New York, Boston and San Francisco, a phenomenon that threatens to segregate us across the country by education.

    July 18, 2014

  • Your chocolate addiction is only going to get more expensive

    For nearly two years, cocoa prices have been on the rise. Finally, that's affecting the price you pay for a bar of chocolate - and there's reason to believe it's only the beginning.

    July 18, 2014

  • Facebook tests button to let people shop from its website

    Members on desktop computers or mobile devices can click a "buy" button to make purchases through advertisements or other posts on the world's largest social network, the Menlo Park, California-based company said Thursday in a blog post.

    July 17, 2014

  • The terrible history of passenger planes getting shot out of the sky

    What is more clear is that, if initial reports are true, this would be the deadliest incident of a civilian passenger plane being shot down in modern memory. In some instances, the causes of the disaster are still shrouded in mystery. Here are some of the worst events.

    July 17, 2014

  • 130408_NT_BEA_good kids We're raising a generation of timid kids

    A week ago, a woman was charged with leaving her child in the car while she went into a store. Her 11-year-old child. This week, a woman was arrested for allowing her 9-year-old daughter to go to the park alone. Which raises just one question: America, what the heck is wrong with you?

    July 17, 2014 1 Photo

  • web_starbucks-cof_big_ce.jpg Starbucks sees more Apple-like stores after Colombia debut

    This week Starbucks opened its first location in Colombia — a 2,700-square-foot store with a heated patio, concrete columns, mirrors on the ceiling and walls of colorful plants.

    July 17, 2014 1 Photo

News Live
AP Video
UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran Texas Sending National Guard Troops to Border Hopkins to Pay $190M After Pelvic Exams Taped Foxx Cites Washington 'Circus Mirror' NASA Ceremony Honors Moon Walker Neil Armstrong Obama Voices Concern About Casualties in Mideast Diplomacy Intensifies Amid Mounting Gaza Toll AP Exclusive: American Beaten in Israel Speaks Obama Protects Gay, Transgender Workers Raw: Gaza Rescuers Search Rubble for Survivors Raw: International Team Inspects MH17 Bodies Raw: 25 Family Members Killed in Gaza Airstrike US Teen Beaten in Mideast Talks About Ordeal 'Weird Al' Is Wowed by Album's Success Shark Sightings a Big Catch for Cape Tourism Native American Teens Get Taste of College Legendary Actor James Garner Dies Ukraine Rebels: Black Boxes Will Be Returned Recording May Show Attempt at Crash Cover-up
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks