Neiman Marcus Acknowledges 1.1 Million Accounts Compromised
In a public statement, the company confirmed speculation that its network had been compromised using techniques similar to those used to hack Target's systems.Neiman Marcus confirmed that the company had become the latest retail chain to have been breached by online thieves, who stole more than 1.1 million credit- and debit-card accounts from the company's computers. In a statement published online on Jan. 22, Neiman Marcus President and CEO Karen Katz said retail terminals had been infected with "scrapers" that copied unencrypted card details during transactions and sent them to collection servers. While the attackers got full card details, PINs and Social Security numbers were not compromised, nor were online shoppers impacted by the breach, she said. "We deeply regret and are very sorry that some of our customers' payment cards were used fraudulently after making purchases at our stores," Katz wrote. "We have taken steps to notify those affected customers for whom we have contact information. We aim to protect your personal and financial information." In mid-December, the retailer's credit-card processor notified the company that its customers had become the victims of fraud. On Jan. 1, an incident response firm hired by Neiman Marcus found evidence of the intrusion, the company said in its statement.
The admission that Neiman Marcus systems had been compromised follows a massive breach at retail giant Target, which the company confirmed in late December. According to statements, attackers breached Target's systems and stole as many as 110 million records, including 40 million credit- and debit-card accounts, from its systems. Similar to the Neiman Marcus breach, scrapers were involved in the Target attack.