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 Music

This week’s top alternative tracks

hozier

LISTEN: This week's top alternative songs, according to the weekly Billboard chart.

in Viral Videos

WATCH: The ‘Force’ is strong with this home

11-overlay

If you weren't already excited for the next "Star Wars" movie, this house will change your mind.

in Viral Videos

WATCH: Airman ‘Santa’ surprises 6-year-old son at storytime

santa

Aaron Williams was sad that his dad, stationed in South Korea, wouldn't be stateside for the holidays ... but a little Christmas magic gave him a gift he'll never forget.

in Entertainment, Trending, Viral Videos

TODAY’S MUST SEE: Colbert’s star-studded farewell to ‘Report’

21-overlay4

Stephen Colbert bid farewell with the help of scores of celebrities in a rousing sendoff to the tune of "We'll Meet Again."

in Music

Michael Stipe offered up as garage sale bargain

Michael Stipe attends the "Young Ones" premiere at the Landmark Sunshine on Thursday, Oct. 9, 2014, in New York.

Watch Former R.E.M. star Michael Stipe star in a skit to mark the end of TV host Stephen Colbert's late-night show.