Photo from Wikimedia Commons
On Jan. 25 the CEO of the Michaels chain, Chuck Rubin, issued a letter to customers warning them of a possible data security attack within the store’s payment card systems.
“We are working closely with federal law enforcement and are conducting an investigation with the help of third-party data security experts to establish the facts,” said Rubin.
The public received updates on April 17 in both a press release and another letter from Rubin. The company confirmed there was indeed a breach in the security systems of both the store specifically and their subsidiary, Aaron Brothers, between May 8, 2013, and Jan. 27, 2014. Certain payment card information, namely card numbers and expiration dates, were compromised in the attack.
In his letter, Rubin said the company was “attacked by criminals using highly sophisticated malware that had not been encountered previously by either of the security firms.”
“Approximately 2.6 million cards may have been impacted, which represents about 7% of payment cards used at Michaels stores in the U.S. during the relevant time period,” said Rubin.
The company also assured customers the incident has been fully contained and shopping at Michaels and Aaron Brothers stores no longer presents a threat to card users.
Throughout the eight-month period, the number and location of stores targeted varied. Downtown Savannah’s Michaels, located on Abercorn, was affected for nearly four months.
Michaels is a frequent stop for many art students. Though the breach is worrying, third-year animation major Carolyn Kriegh from Moscow, Pa. said it probably wouldn’t keep her from shopping at the store in the future.
“It’s one of the few places that does art stuff other than Ex Libris and Utrecht,” she said. “I think my demand outweighs the fear of my stuff being compromised.”
The company provided a list of all affected stores and dates of exposure on their website.
“We are truly sorry and deeply regret any inconvenience this may cause,” said Rubin.
To help remedy the situation, Michaels Stores is offering those affected by both Michaels and Aaron Brothers free identity protection, credit monitoring services and a fraud assistance service provided by AllClear ID for the next year.
“Our customers are always our number one priority and we are committed to retaining your trust and loyalty,” said Rubin.
For those still concerned, Michaels suggests ordering your free credit report, reviewing it carefully for discrepancies, and reporting anything that looks suspicious to your bank or card issuer. For further precaution, placing a fraud alert or security-freeze on your credit file will provide greater security.
The company’s website displays full information on precautionary measures advised.
“In an era where very sophisticated and determined criminals have proven capable of successfully attacking a wide range of computer networks, we must all increase our level of vigilance,” Rubin said. “We are committed to working with other parties to improve the security of payment card transactions for all consumers.”
