Cyber Attack Explained: Target (2013)

Summary

Target’s massive 2013 data breach began on Black Friday when hackers phished credentials from a third-party contractor, Fazio Mechanical, using a malicious attachment that deployed a Citadel Trojan. That access let attackers install malware on point-of-sale systems, siphoning names, addresses and card data for up to 110 million customers. The intrusion went unnoticed until December 15, triggering costly settlements, fines, cybersecurity overhauls, and CEO Greg Steinhafel’s resignation. The incident rocked consumer trust, prompted Senate hearings, and forced retailers to strengthen vendor controls and payment security — a stark lesson in the real-world cost of weak third-party defenses.

Takeaways

• 😀 The Target data breach occurred in December 2013, impacting up to 110 million customers.
• 😀 The breach was triggered by a phishing attack targeting one of Target's third-party contractors, Fazio Mechanical.
• 😀 The hackers used malware to infiltrate Target's point of sale (POS) systems, capturing sensitive customer data including credit card and debit card numbers.
• 😀 The breach went undetected for weeks, with hackers stealing millions of customers' personal and financial information.
• 😀 Target discovered the breach on December 15, 2013, and notified authorities shortly after.
• 😀 As a result of the breach, Target faced massive financial losses, including legal fines and compensation payments to affected customers.
• 😀 The breach led to a loss of customer trust, damage to Target's reputation, and a significant drop in stock price.
• 😀 CEO Greg Steinhafel resigned, taking personal responsibility for the incident and pledging improvements to cybersecurity.
• 😀 Target faced numerous lawsuits and regulatory investigations, leading to further costs and scrutiny from the U.S. Senate.
• 😀 The breach highlighted vulnerabilities in vendor management and cybersecurity, prompting other retailers to reassess their own security protocols.
• 😀 Public awareness of data security increased significantly, with consumers taking steps to protect their personal and financial information after the breach.

Q & A

What was the scale of the data breach Target Corporation experienced in 2013?

In December 2013, Target announced a massive data breach that affected up to 110 million customers. The breach exposed personal and financial information, including names, addresses, phone numbers, email addresses, and credit/debit card details.

How did the hackers gain access to Target's network?

The hackers used a phishing attack to target one of Target's third-party contractors, Fazio Mechanical. An employee opened a malicious email attachment containing a Trojan Horse, which allowed hackers to steal login credentials and gain access to Target's network.

What kind of malware was used in the Target data breach?

The hackers installed malware on Target's point of sale (POS) systems, which are devices used for processing customer transactions. The malware captured credit and debit card information, as well as other personal data.

How long did it take for Target to detect the breach?

The breach went undetected for several weeks, and Target only discovered it on December 15, 2013, giving the hackers ample time to steal data from millions of customers.

What were the consequences of the breach for Target?

Target faced significant financial costs, including compensation to affected customers, fines, legal settlements, and expenses related to improving cybersecurity. The breach also damaged Target's reputation and resulted in a decline in its stock price.

Who resigned as a result of the data breach?

Greg Steinhafel, the CEO of Target, resigned following the breach. He took personal responsibility for the incident and promised that Target would emerge stronger as a result.

What role did John Mulligan play after the data breach?

John Mulligan, the interim CEO of Target, testified at U.S. Senate hearings regarding the breach. He acknowledged that better security measures could have been implemented, particularly in managing third-party vendors.

What impact did the breach have on consumer behavior?

The breach raised public awareness about data security risks. Many consumers took steps to protect their personal information, such as monitoring credit reports and using more secure forms of payment.

Who was allegedly responsible for the POS malware used in the breach?

According to Time Magazine, the author of the POS malware was a 17-year-old teen, although the teen denied the allegation.

What broader impact did the breach have on the retail industry?

The Target data breach highlighted the need for stronger cybersecurity measures across the retail industry. As a result, many retailers reviewed and improved their own cybersecurity protocols to prevent similar incidents.