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Hannaford’s Card Heist Hannaford Brothers Company made national news as the New England grocery chain recently fell victim to a new breed of targeted malware. The attack involved the installation of an illegal and unauthorized computer program on servers at 300+ stores in many New England states. The malicious Trojan was programmed to commandeer what is described as “Track 2” information from the magnetic strip on credit and debit cards being swiped at the Hannaford’s check out counters. This track includes the card number and expiration date, but not the customer’s name. With the card’s security code embedded in this strip, criminals can use the stolen information to manufacture counterfeit cards or make purchases where customers are not actually present, such as online and telephone purchases. The data was stolen during the transaction-authorization process. A new approach to identity theft, this attack obtains data in transit during the authorization process and quickly sends batches of information to an unidentified offshore ISP. This method of attack is a greater threat as more companies are moving sensitive financial information out of their own data storage and transmitting information more frequently. It also proves that hackers are capable of creating remote Trojans for specific targets. Issuing banks usually cover fraudulent credit card charges, but in this case, where Hannaford’s is responsible for the breach, direct fraud costs may be charged back to the retailer. With at least 1800 known cases of fraud having already been reported as a result of the information heist and over four million credit and debit card numbers compromised, the cost of this incident is on the rise.

Contributed by Information Security on April 16, 2008, at 11:53 AM UTC.

PLEASE VISIT THE CONTRIBUTOR'S WEBSITE

Lexan Systems L.L.C. Information Security Consultants www.lexansystems.com

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