targetbreach12.20.13

Upload: sean-sposito

Post on 13-Apr-2018

215 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/27/2019 TargetBreach12.20.13

    1/2

    Filename:A1-MAIN-AJCD1220-AJCD Date/Time created:Dec 19 2013 11:42:09:033PM Username: SPEEDDRIVER03

    Friday,Dec20,2013MAIN 1AAJCD1A

    K

    Cyan Magenta Yellow Black

    1ACyanMagenta YellowBlack AJCD

    K i l l e d

    Filename:A1-MAIN-AJCD1220-AJCD Date/Time created:Dec19 201311:42:09:036PM Username: SPEEDDRIVER03

    AJCD

    Classifieds E1

    ComicsD14

    DearAbbyD4

    Editorial A18

    ObituariesB7

    PuzzlesD13

    TelevisionD3

    TheVentB2

    2013 AJC,VOL.65, NO. 354

    PRINTEDWITHSOYINKONRECYCLEDPAPER

    NATION&WORLD

    Theatercollapseinjuresdozens

    The ceilingof a Londontheaterpartially collapsedThursday night, showering apacked audience withheapsof plaster, wood anddust.More than80 people wereinjured, sevenseriously, A3

    DuckDynasty:PhilRobertson,suspended fromthe series indenitely aftermaking controversial remarksabout gaysand blacks, isgetting some support fromkey followers, A2

    NSA:ThenationaldebateoverU.S. governmentsurveillancehas tilted in favorofthoseseeking tolimittheNational Security Agencysexpansive spying powers,A6

    BUSINESS

    ImpactofFedtaperlikelytobeslightThe Federal Reserves moveWednesdayto slowits stim-uluswill ripple through theglobal economy. But exactlyhow it will aect people andbusinesses depends on whoyouare, A15

    METRO

    Emails:Bravesmove

    putcityondefenseMayor Kasim Reeds teamwas not prepared for theBraves announcementthey weremoving to CobbCounty,and frantic messagesreveal the fallout, B1

    Cobbgirls:Policehavestartedan investigationintotheposting of explicit photosof area high schoolers, B1

    Ethicsagencyturns tooutsiderforassistance

    Georgias ethics commis-sion took the unprecedent-ed step Thursday of hiringan outsider to oversee theagency roiled by bitter in-fighting and an intensifyingfederal investigation amidclaims its too cozy withGov. Nathan Deal. An ex-

    lobbyist and former judgehas been selected, B1

    Getthis greatdeal

    atwww.Kudzu.com/deals:

    Only$37 fororganicdeep

    steamcarpetcleaning

    includes2 rooms!

    Lookbackat2013Bonuscoverageis justone click

    away.OurYearInReviewlooks

    backat localnewsincluding

    coverageoftheAndrea

    Sneidermantrial,theMcNair

    schoolshooting,thetrials of

    numerouspublicocialsand

    theGwinnettfirefightersheld

    hostage.Remember,youllhave

    accesstoallofourin-depth

    newsonMyAJC.complus

    ourpremiumcoverage,specialphotogalleriesandourrich

    interactivecontent.

    The economic impact ofnew Atlanta Braves sta-dium includes 9,241 new

    jobs a nd $ 295 millio n inwages. Revitalize Cobb, in a mail-er sent Nov. 22, 2013,B1

    GOGUIDE,D1

    Needplans forNewYearsEve?Useourguide

    SPORTS,C1

    Sayhello tothenewfaceofKennesawState

    PartlycloudyHigh:64,Low:43

    20%chanceof rain

    Saturday:Rain,71/55

    Sunday:Storms,69/61

    Detailson thebackofSports

    FRIDAY, DEC. 20, 2013

    ByMichaelE. [email protected]

    The Georgia unemploy-ment rate dropped last monthto 7.7 percent, its lowest pointin five years, as the economyadded jobs across a range ofsectors and layoffs slowed topre-recession levels.

    Unemployment is still his-torically high and long-termjobl essnes s is stil l a virt ual ep-idemic, but the lower joblessrate reflects vast improvementfrom the double-digit unem-ployment of several years ago.

    It also fuels hope that hir-ing will pick up through thenew year.

    This confirms that the eco-nomic recovery is in place,said Jeffrey Humphreys, direc-tor of the Selig Center for Eco-nomic Growth at the Univer-sity of Georgia. This is verygood, soli d news .

    The states economy added19,500 jobs in November and91,200 in the past year, ac-cording to Mark Butler, state

    labor commissioner. Thegrowt h ca me in several indus -tries, which indicates a broadjob market recovery.

    The job search is not easy,but m ore em ployer s are will-ing to hire, said Steve Hines, aBuckhead-based career coun-selor and author of AtlantaJobs.

    The market has definitelypicked up this year, he said.There are just more openingsthan three or four years ago.

    Despite that growth, in the4 years since the recessionofficially ended, the state has

    Statesjoblessratedropsto5-yearlowLong-term joblessness

    tempershopeful sign.

    Among unemployed,nearly half have beensearching for6 months.

    JoblesscontinuedonA4

    GEORGIA ECONOMY

    EricaParks,a 35-year-oldArmyveteran, searchesonline forjob

    openingsat hergrandmothers home.Parkshasbeen outofwork

    fortwo years. JASONGETZ /[email protected]

    Inpast12months,Georgia

    hasgained91,200jobs total.

    Resultsamongvarious sectors:

    27,400:professional

    andbusinessservices

    20,500: leisure

    andhospitality

    18,600: education

    andhealthservices16,500:transportation

    andwarehousing13,100:construction

    During justNovember,

    Georgiagained19,500 jobs.

    Resultsamongvarioussectors:

    14,700: trade,transportation

    andwarehousing

    2,000: government

    1,700:financialservices

    1,500:construction

    1,500:education1,500:healthcare1,000:manufacturing900: informationservices

    Growingjobs inGeorgia

    Source:Georgia Departmentof Labor

    [email protected]

    The criminals who crackedTargets defenses, stealingdebit and credit card infor-

    mation of as many as 40 mil-lion shoppers who swiped atthe retailers stores, exposed amajor vulnerability in the wayAmericans pay.

    The credit card system isinherently broken, said Jer-emiah Grossman, the chieftechnology officer of Web-ap-plication security firm White-Hat Security. Its a shared-se-cret system, in which every-

    one has the secret every timeyou swipe your card in theU.S.

    That secret is the data en-coded on the back of magnet-ic-stripe cards: the name ofthe cardholder, plus the ac-count number, security codeand expiration date, amongother vital bits.

    Banks and other card issu-ers not individual consum-

    ers will absorb whatever di-rect losses result from the Tar-get se curit y brea ch. T hatsa fundamental part of howplastic works: consumer pro-tections shield individual

    Target breach exposes holes

    Target continuedonA12

    CONSUMERSAFETY

    Credit, debit systemsvulnerability put 40Mshoppers data at risk.

    AlsoinsideDidyou shopat Target?Findout

    howtoprotectyourcredit,A12

    By Kristina Torres

    [email protected]

    The states case was meantto be a slam dunk: GeorgiaSen. Don Balfour, one of the

    states top political leaders,had already confessed to filingdozens of error-filled expense

    reports.Now Georgia Attorney Gen-

    eral Sam Olens is left explain-ing why he backed such aclunker.

    A jury took less than threehours to find Balfour notguilt y Thur sday on al l co unts

    that he tried to steal moneyfrom the state, turning oneof the states highest-profilecriminal prosecutions into amess of finger-pointing andsour grapes.

    Olens never set foot in thecourtroom during the three-day trial, but insisted after theverdict Balf ours ex pense re-quests were too numerous andsystematic to be simply iso-

    lated mistakes, he said in astatement issued by a spokes-woman. If those request s had

    been s ubmit ted by an un elec t-ed state employee, they wouldhave been prosecuted, and astate senator should not beheld to a lower standard.

    Defense attorney WilliamHill Jr. claimed the state spent$1.5 million on the year-and-a-half investigation, basing his

    Verdict lets Balfour get back to Ga. SenateLegislator acquitted ofling false claims;casebogged by minutiae.

    BalfourcontinuedonA4

    ETHICSWATCH

    ReadwhattheAJCsKyle

    Wingfield hasto sayaboutthe

    possiblepoliticalramifications

    afterthe Balfouracquittal.

    AlsoinsideEthicsagencyhiresoutsiderto

    overseetroubled commission,B1

    [email protected]

    A career educator Thurs-day became the first princi-pal to plead guilty in the Atlan-ta Public Schools test-cheat-ing scandal and the first defen-dant to be convicted of a fel-ony.

    Armstead Salters, who over-saw C.L. Gideons ElementarySchool for three decades, ad-mitted he directed his teach-ers to change wrong answerson standardized tests to rightones.

    It was an open secretthroughout APS that cheat-ing was going on at Gideonsfor years, Fulton County pros-ecutor Clint Rucker said dur-ing the court hearing. Evenso, Gideons received con-stant praise and accoladesfrom top APS administrators,including former Superinten-dent Beverly Hall, who alsois charged in the case, Ruck-er said.

    Shortly after Salters enteredhis plea, the third formerteacher from Humphries Ele-mentary School also pleadedguilt y. Eigh t AP S def endan ts

    now stand convicted. The 26who rem ain a re sch eduled togo to tria l next sprin g unl essmore enter pleas before then.

    Salters, 74, began his teach-ing career in 1966 as a highschool science teacher. In1981, he was promoted to beGideons principal, a positionhe held until 2010.

    The pressure to meet test-

    First APSprincipalpleadsguilty

    APSpleas continuedonA12

    CHEATINGSCANDAL

    Gideons educator

    convicted of felony;26 defendants remain.

    Followthecaseprogressof

    eacheducatornamed in the

    APSindictment.

    [email protected]

    The U.S. Army announcedThursday that its cyberwar-fare headquarters will move toFort Gordon with 1,500 jobs half likely to be well-paying ci-vilian techies givin g Georg iaan economic coup and boost-ing Augustas already robust in-formation technology industry.

    For Augusta, its Christ-mas, New Years and the SuperBowl all wrapped into one. Au-gusta poli tica l an d busi nessofficials were over the moonThursday imagining hundredsof additional military andcivilian jobs, a flurry of homeand office construction and acemented reputation on the

    Armys cyberwarriorscoming to Georgia base

    Jobs continuedonA4

  • 7/27/2019 TargetBreach12.20.13

    2/2

    Filename:A12-MAIN-AJCD1220-AJCD Date/Time created:Dec19 201311:12:16:786PM Username: SPEEDDRIVER13

    Friday,Dec 20, 2013 MAIN 12AAJCD12ACyan Magenta Yellow Black

    A12 CREDIBLE. COMPELLING. COMPLETE. THE ATLANTAJOURNAL-CONSTITUT ION FRIDAY, DEC. 20, 2013

    12ACyanMagenta YellowBlack AJCD File name: A12-MAIN-AJCD1220-AJCD Date/Timecreated: Dec 19 2013 11:12:16:790PM Username:

    3

    ing targets was exces-sive and extreme, Salterssaid in a letter of apology,a condition placed on himby pro secuto rs as part ofhis plea. It was unrelent-ing and created a toxicculture throughout APSwhere a ll t hat matte redwas t est scores , even ifill-gotten, Salters pleaagreement said.

    I placed the concernof the school administra-tion for test results andtest scores above the in-terests of the children,he said.

    Salters disclosed toprosecutors how he coor-dinated test cheating andexplained why he did it.Gideons, located in south-west Atlan ta, had a chal -lenging, transient studentpopulation after nearbyhousing projects closedin the early 2000s. Its stu-dents performed slightlybelow average in re ading ,language arts and math.

    Salters plea agreementsaid he knew that Hall, af-ter becoming superinten-dent, began firing teach-ers whose schools did notmeet desired results. Thesuperintendent public-

    ly boasted about this facton many occasions, on-ly increasing the pressureto make sure his schooldid well, the plea agree-ment said.

    Test tampering beganoccurring at Gideons asearly as 2005 and con-tinued until 2009, Salt-ers told prosecutors. Thiswas po ssibl e bec ause t heschools testing coordina-tor, Sheridan Rogers, an-other defendant in thecase, gave teachers accessto their students tests sothey could correct wronganswers, Salters said.

    The former principalsaid he told teachers to gosee Rogers and admittedthat he told Rogers, Letthem have the tests.

    Salters agreed to coop-

    erate with prosecutorsand is expected to testifyagainst Rogers at the up-coming trial.

    Salters pleaded guiltyto a single felony count of

    APSpleascontinued fromA1

    FROMPAGEONE

    making false statementsand writings. This was be-cause he signed and thensubmitted the 2009 Cri-terion-Referenced Com-petency Tests taken byhis students and gave as-surances there had beenno ethical breaches in thetesting procedure.

    Salters was sentencedto two years on probationand ordered to complete1,000 hours of communi-ty service. He also agreedto return $2,000 in bo-nuses he received.

    Wendy Ahmed, a for-mer Humphries Elemen-

    tary teacher, followedSalters to the courtroompodium. She admitted totelling her students thecorrect answers whilethey took the 2009 CRCT.

    Ahmed pleaded guiltyto a misdemeanor countof obstruction. She wassentenced to a year onprobation and orderedto perform 250 hours ofcommunity service andreturn $500 in bonusmoney.

    Standing before Superi-or Court Judge Jerry Bax-ter, Ahmed said she couldnot find the words to ex-press her shame.

    I made poor deci-sions that did more harmthan good to my stu-dents, Ahmed said, hervoice trembl ing. I to okso much pride in teachingthe children of Atlanta,yet I allowed the fear ofadministrators to alter mybelie fs a nd val ues.

    Baxter has ordered law-yers representing the re-maining APS defendantsto appear before him to-day to see whether theyhave checked in with pros-ecutors to determine whatdeals are being oered.

    Gerald Griggs, an attor-

    ney who represents for-mer Dobbs Elementaryteacher Angela William-son, said his client willfight the charges at trial.

    Its a sad day in At-lanta to hear the pun-ishments that are beinghanded out now to indi-vidua ls wh o ac cepted re-sponsibility for a system-ic issue, said Griggs,who o bserve d Thurs dayspleas. The one constantis the pressure all theseteachers faced. Once thetrial is underway, we willtruly know the scope ofthat pressure.

    Wendy Ahmed, a former teacherat Humphries Elemen-tary, walksto thepodium toreadher apology letter duringa plea hearing in theAPScriminal case Thursday.

    Armstead Salters (left), ex-principal of C.L.Gideons Elementary, became the firstde-fendantin thecaseto plead guiltyto a felony charge. PHOTOSBY HYOSUBSHIN / [email protected]

    product and spend thecash. Criminals can alsobuy go ods o nlin e.

    Sometimes criminalsbols ter t he pr ice o f th eirwares by va lidat ing t hatthe card is still active atelltale sign that your ac-count has been compro-mised. They do that byinitiating a micro-chargeof two dollars or less,something that yourenot going to call your is-suer about, said YaronSamid, chief executive ofstart-up BillGuard, whichmonitors its users card

    accounts for fraud.That means card-

    holders should be vigi-lant for months, he said,or at least change theirPIN codes if they thinktheyve been affected.

    Criminals, he ex-plained, can hold on tocardholder data for along time before sellingit on the black market.And even more time mayelapse before the transac-tions that bilk cardhold-ers at the ATM or the vir-tual or physical point ofsale.

    This all puts the affect-ed banks, payment net-works (Amex, Visa , Mas -terCard and Discover) andmerchants in a tight spot.

    Banks have to make adecision on whether ornot to either issue theircustomers new cards orjust put t ighte r frau d con -trols on the accounts ofcustomers who mighthave been impacted.

    When such incidentsoccur, Visa works withthe breached entity toprovide card issuers withthe compromised ac-counts so they can takesteps to protect consum-ers through fraud moni-

    toring and, if needed, re-issuing cards, a spokes-woman email ed. Be-cause of advanced fraud-monitoring capabilities,the incidence of fraud in-volvi ng co mpromi sed a c-counts is actually rare,and Visa fraud rates re-main near historic lows.

    Bank of America andWells Fargo provided sim-ilar statements, empha-sizing that customers willnot lose money if theircards are used for boguscharges.

    As they scramble todeal with the Target

    breach , fi nanci al s ervic -es companies are alreadylooking to shift the sys-tem.

    The most prominentway t hey re doi ng t his iswith the chip card s tan-dard thats being usedby i ssuers of c ards i n jus tabout every country inthe world outside the U.S.

    Those cards knownas Europay, MasterCardand Visa, or EMV arearmed with encrypt-ed chips. EMV technol-ogy, experts explain, isjust more s ecure than the

    magnetic stripes used onAmerican cards.

    This case exposes thereality that payment net-works are o nly a s stro ngas their weakest link,said Wedbush senior an-alyst Gil B. Luria. Thebad g uys f ind that weak-est link and exploit it, andthen generate very sub-stantial gains.

    Visa and MasterCardhave said that all mer-chants except gasoline re-tailers that dont have theequipment to accept EMVcards by October 2015 willbe l iable for a ny fra udu-lent transactions madeon their terminals, Luriasaid.

    Its a matter of try-ing to squeeze fraud outof the system, said Ran-dy Vanderhoof, the direc-tor of the EMV MigrationForum, a nonprofit withmore than 150 participat-ing organizations.

    But EMV only protectsagainst fraud at brick-and-mortar retailers, not on-line. In cyberspace, thepayment networks are fo-cusing on other methodsto cut fraud.

    Until EMV takes hold,or something more resil-

    ient takes the place of thecurrent payment system,consumers will just haveto live with the headachescaused by breaches.

    Its ultimately not theconsumers who face theliability here, thats theone beautiful thing aboutthe credit card system,said Robert E. Lee, a se-curity business partner atIntuit. If my card is sto-len and used like this, Imnot out of pocket.

    There are all theseconsumer protections inplace, even though theentire system is stupid.

    cardholders from liability.But theres still the has-

    sle of watching for bo-gus c harges or req uest-ing a new card and updat-ing any automatic pay-ments associated with theold one.

    For card issuers, da-ta thefts on the scale ofthe Target breach, whichoccurred between Nov.27 and the middle of thismonth, represent a ma-

    jor h eadac he an d pos siblysubstantial expenses. Tocombat would-be thieves,payment networks, banksand retailers are alreadyshifting to new technol-ogies, but the transitionwill take years .

    Target admitted Thurs-day that hackers had in-filtrated the payment sys-tem used in all its brick-and-mortar stores. Theadmission came a day af-ter digital security report-er Brian Krebs broke thestory.

    The nationwide retailerstressed that its estimateof the number of peo-ple affected, 40 million,is just an approximation.Many of those shopperswill proba bly n ever exp e-rience any fraud on theiraccounts.

    For now, exactly howthis particular breachhappened is unclear. Tar-get h ad li ttle to s ay onthat subject.

    Clearly this was a so-phisticated crime, saidTarget spokeswoman Mol-ly Snyder, in an email.However, it is an activeand ongoing investigationso I cannot comment fur-ther.

    Still, experts are fairlysure how these schemestake shape.

    Hackers do businesson forums in the deep re-cesses of the Internet.These meeting places actas eBays for criminal ac-tivity. There, maliciousactors buy and sell stoleninformation.

    After that crooks canwork wi th s eparat egroups that replic ate t hestolen card informationand place lifted data on-to pieces of plastic. Even-tually, mules on the streetget h old o f th e fi nishe d

    Targetcontinued fromA1

    Answers about the

    Target data breachBy BreeFowler

    AssociatedPress

    With less than a weekuntil Christmas, a real-life Grinch has stolen thecredit and debit card in-formation of about 40million Target shoppers.

    Target says anyone whomade purchases by swip-ing cards at terminals inits U.S. stores betweenNov. 27 and Dec. 15 may

    have had their accountsexposed.Here are some answers

    to the most commonquestions about the theft:

    Q: I shopped at Targetduring that time. Whatshould I do?A: Check your creditcard statements careful-ly. If you see suspiciouscharges, report the ac-tivity to your credit cardcompanies and call Tar-get a t 86 6-852- 8680. Youcan report cases of iden-tity theft to law enforce-ment or the Federal Trade

    Commission.You can get more in-

    formation about identitytheft on the FTCs websiteat www.consumer.gov/idtheft, or by calling theFTC, at (877) IDTHEFT(438-4338).

    Q: How did the breachoccur?A: Target isnt saying howit happened. Industry ex-perts note that compa-

    nies such as Target spendmillions of dollars eachyear on credit card secu-rity, making a theft of thismagnitude particularlyalarming.

    Experts disagree abouthow the breach mighthave happened.

    Avivah Litan, a securityanalyst with Gartner Re-search, says given all thesecurity, she believes thebreach may h ave bee n aninside job.

    But thefts of this sizeare too big to be the workof company employees,says Ken Stasiak, founder

    and CEO of Secure State,a Cleveland-based infor-mation security firm thatinvestigates data breach-es like this one. Stasiaksaid that such breachesare generally perpetratedby or ganiz ed cr ime o r anoverseas, state-sponsoredhacker group.

    Q: Who pays if thereare fraudulent chargeson my account?

    A: The good news is inmost cases consumersarent on the hook forfraudulent charges.

    Credit cardcompaniesare oftenable to agthechargesbeforethey gothroughand shut downyour card. If that doesnthappen, the cardissuerwill generally strip chargesyouclaim arefraudulento yourcard immediately.

    And since the fraud hasbeen t ied t o Tar get, itl lbe th e ret ailer that ulti -mately compensates thebanks and c redit cardcompanies.