Michaels is a huge north American chain that specializes in arts and crafts and other crafts related supplies. It is one of the biggest retailers for this specialty market in the united States. According to the latest reports, Michaels is being investigated by federal authorities in connection with the recent data breach that hit Neiman Marcus and Target Stores. They’re looking for certain data breach patterns.
What prompted the investigation? It appears that at least four banks or financial institutions have noticed a series of fraudulent credit card charges using cards that were used at Michaels. This is a very big news because it shows that the footprint of the hacking data breach that hit Target, and Neiman Marcus is fast expanding. As we mentioned earlier this data breach may be tied to a compromised hardware. There’re also some reports that a 17-year-old from eastern Europe is connected with the hacking. Be that as it may, this shows that the data breach is going to get much wider, and it might not end with Michaels. According to several reports, at least three other retailers might have been hit. Sadly, this is not the first time that Micheals made news due to security issues. In 2011, investigators found that the arts and crafts store’s network had around 70 or more compromised point of sale devices. It appears that crooks modified these devices in such a way as to divert or suck up customers’ payment card and TIN information. Really scary stuff going on out there. A lot of the data breach is due to the hardware issues.
Be that as it may, don’t be surprised if predictable class action law suits get filed. A lot of people say that lawyers are ambulance chasers. Well, it appears that they will not be just chasing physical ambulances, they could also be chasing digital ambulances in the case of security breaches. Be that as it may, sometimes legal actions like that tend to push corporate players to run a tighter ship when it comes to data protection and other security processes involving customer information.