Has Business Learned From Target’s Data Breach?

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Feb. 26 (Bloomberg) -- Jason Maloni head of data security & privacy at Levick, and Jonathan Oringer, CEO at Shutterstock, examine what has been learned from Target’s holiday season data breach on Bloomberg Television’s “Market Makers.”

What was target's course of action, and did they do it right?

Target was continually playing catch-up, behind it all of it.

They did not break the story themselves.

In the first few weeks, they seem to be behind the story.

In december they took control.

We saw the ceo stating all the actions the company was taking, making steps towards regaining trust of consumers.

They offered a 10% discount to shoppers, which is more of a gesture, but it speaks to who their customers are.

After falling behind initially they made some steps forward.

Did that discount do anything to the customers?

I was in a store and i thought, bonus, but they did not need to do that.

What they need to do is show me a plan of action that i will feel more secure.

You hit the right word, action.

They need to say less and do more.

The 10% is more of a gesture than a leadership position.

It does pay to what their consumers want, and that is lower prices.

We will see more coming out about the target matter.

There are questions that remain.

Congress asking what they knew and when they knew it.

But the economy is improving, their stock is up a bit.

If they make more leadership moves and he come a -- become a game changer for the industry, that will serve them well.

You say that we will see more.

What do you anticipate from target?

Congress is asking what they knew and when.

What did they do when they knew they may have had a problem?

Questions will remain and will continue for some months.

They will continue to see costs from the investigation, litigation and so forth.

That is going to be a part of any data breach.

What needs to happen now is target needs to continue to not simply talk, but do.

Demonstrate leadership.

They need to join with other retailers in their industry and talk about how they are going to lift all boats, how they can make the consumer experience better and safer from a security perspective.

We have heard that they will be working with, collaborating with partners and competitors.

We need to see it.

It is not just elaboration with their competitors.

Isn't it working with credit card companies to get better technology on these cards?

Aren't we going to continue to see these things happening if we do not have that stuff?

Yes, we will.

Target will be among the first several retailers that we will hear from this year.

They are in the crosshairs of these criminal organizations.

They will not be the only one.

They are at the center, and intersection that involves financial institutions, current processes.

However, they need to continue to take a leadership role and drag others toward the finish line.

We will be getting technology in the coming years, a shame that we have not seen it sooner.

They have it in europe.

To the extent target can continue to move the ball forward, that is a good aim.

You run a business, you may not have the credit card data for millions of americans, but you have valuable data, i presume.

Do you fear for its security?

We have a whole team that deals with this all day.

You have a data security team.

Yes, and that is all they do.

We think about this all the time.

When it comes to credit card companies, we need them to innovate.

It is great that companies might square and paypal are pushing them to do this type of stuff, because there is no other innovation going on inside american express and visa mastercard, it seems to me.

Target did not handle this the right way.

That is fairly clear.

Does this mean that companies like target -- and there are other retailers that have been preyed upon -- are going to continue to be vulnerable without two factor authorization and other security measures that banks and other payment processing companies could be taken to make it safer for all of us?

New are right, it cannot be executed in a vacuum.

It is a technology solution that involves many players in the industry.

It will take a broader effort than simply a target or walmart or cosco could implement themselves.

However, for target, to the extent they can move the ball forward, they should.

They should be bringing this to the table.

I need to see more of that.

I need to see more clear actions and less work.

-- words.

Is there a company out there that you think is doing it right?

Everyone is in the same boat.

We rely on the processing technology we have.

In terms of who is doing it right, hard to say.

I know vulnerability is out there for almost every retailer.

Financial institutions were once in the sights of these criminal gangs.

Their technology and security with payment processors have been stepped up.

Retail is the new battlefield.

That will be the new site for these cyber attacks.

This text has been automatically generated. It may not be 100% accurate.


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