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 News

in Viral Videos

Famous album covers come alive

18-overlay1

No, your eyes aren't tricking you. The album covers in Roy Kafri's new music video ARE singing along.

in Entertainment

Oprah, Neil Patrick Harris among year’s most ‘fascinating’

FILE - This Sept. 20, 2009 file photo shows host Neil Patrick Harris during the 61st Primetime Emmy Awards in Los Angeles. Harris will host the Emmys again. CBS will air the Emmycast live from Los Angeles on Sept. 22. (AP Photo/Mark J. Terrill, file)

Barbara Walters is back with her annual TV special.

in Music

Pete Wentz joins Cobra Starship

wentz

The Fall Out Boy star has joined Cobra Starship as a replacement for departing bassist Alex Suarez.

in Music

How Joe Perry finally got his prized guitar back

slash

Strapped for cash the Aerosmith star sold his prized 1959 Les Paul guitar and it somehow ended up in Slash's hands.

in Music

WATCH: Primus sends fans on hunt for lifetime tickets

25-overlay2

The band is offering fans lifetime passes to their gigs if they find a golden ticket inside the vinyl version of their new album.