Last week, this blog reported that Target has announced plans to invest more than $100 million to improve the company's REDcard credit card by adding an EMV chip. Target will also upgrade all of the payment terminals in its 1,797 U.S. stores.
This stems from the massive security breach that affected nearly 110 million users between November 27 and December 15 last year. The number of victims alone caused this to become major news and the financial ramifications have just begun to take shape.
While the fear of lawsuits and settlements still looms and sales from the fourth quarter, which includes the holiday season, were down 5.3 percent, the fallout has included more than just money. Back in April it was announced that chief information officer Beth Jacob has stepped down and will be replaced by Bob DeRodes, a former advisor for the U.S. Secretary of Defense and the U.S. Department of Justice.
Now, according to an article from Mashable, it was announced that CEO Gregg Steinhafel will be stepping down and replaced by CFO John Mulligan while a search is conducted. This ends Steinhafel's 35 years with the company since joining as a merchandise trainee in 1979.
"Most recently, Gregg led the response to Target's 2013 data breach," a company release reads. "He held himself personally accountable and pledged that Target would emerge a better company. We are grateful to him for his tireless leadership and will always consider him a member of the Target family."
This shows what can happen from a single card processing software breach. Organizations need to start ensuring that all their operations are up to the challenge of cyber security.