Target bolsters its digital security
Retailer hires a new information chief and plans a switch to more secure payment cards.
Target Corp. is hoping its newly hired chief information officer, Bob DeRodes, and its plan to switch its inhouse payment cards to a more secure system from MasterCard Inc. will help it avoid another massive data breach.
The Minneapolis retail giant has made deep changes to its information security systems since hackers broke in during the holiday season last year and made off with data from up to 110 million customers.
On Tuesday, the chain said that DeRodes would step into his new position overseeing digital safety enhancements Monday.
His resume includes stints advising the secretary of Defense and the departments of Homeland Security and Justice as well as technology roles at Citibank, Delta Air Lines Inc. and Home Depot Inc.
His predecessor, Beth Jacob, stepped down last month. Target said it continues to search for a chief information security officer and a chief compliance officer.
The company also said that it would switch its credit and debit REDcards to MasterCard’s system from Visa Inc.’s early next year.
The new cards will store data on a more secure system that uses embedded chips and personal identification numbers rather than magnetic strips, the current norm.
Target said this year that it would invest $100 million to speed up its move to the so-called chip-and-PIN setup.
The company said it would have new payment readers and accompanying software in all of its nearly 1,800 U.S. stores in September, six months ahead of its original schedule.
Target has already tried to bolster its data security by resetting passwords for 445,000 employees and contractors while disabling many vendor accounts and reducing access privileges for others.
The retailer is not alone in struggling through the consequences of a breach. In recent months, arts supply chain Michaels Stores Inc. and department store com- pany Neiman Marcus Group indicated that they were targeted by hackers.
Target’s stock closed Tuesday at $61.97 a share, down 21 cents, or 0.34%.