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 Local

Ferndale man walking on the road struck, killed

Updated
police lights

The Washington State Patrol says alcohol and drugs weren't involved

in Local Sports

Tanev lifts Canucks over skidding Flames

Vancouver Canucks' goalie Ryan Miller (30) is congratulated by Kevin Bieksa (3) after the Canucks' victory 4-1 victory over the St. Louis Blues in an NHL hockey game, Thursday, Oct. 23, 2014, in St. Louis.

The Vancouver Canucks defeated the skidding Calgary Flames 3-2 Saturday night to snap a five-game losing streak.

in Local Sports

No. 8 Gonzaga struggles past Cal Poly

Gonzaga’s mascot

No. 8 Gonzaga struggled to shake pesky Cal Poly before pulling away for a 63-50 win on Saturday night.

in Local Sports

No. 16 Washington edges No. 15 Oklahoma

Washington head coach Lorenzo Romar, left, hugs guard Andrew Andrews (12) after an NCAA college basketball game, Sunday, Dec. 7, 2014, in Seattle, Wash. Washington beat San Diego State 49-36.

The Huskies (10-0) led by as many as 20 in the first half.

in Sports

No. 1 Kentucky scores first 24 points, beats UCLA

From left, Kentucky's Aaron Harrison, Tyler Ulis, and head coach John Calipari pause for a moment during the second half of an NCAA college basketball game, Saturday, Dec. 13, 2014. Kentucky won 84-70.

Devin Booker had 19 points, and No. 1 Kentucky scored the game's first 24 points in an 83-44 victory over UCLA on Saturday.