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Neiman Marcus is latest victim of security breach

Neiman Marcus Customers At Risk After Data Breach


NEW YORK (AP) - Luxury merchant Neiman Marcus confirmed Saturday that thieves may have stolen customers' credit and debit card information and made unauthorized charges over the holiday season, becoming the second retailer in recent weeks to announce it had fallen victim to a cyber-security attack.

The hacking, coming weeks after Target Corp. revealed its own breach, underscores the increasing challenges that merchants have in thwarting security breaches.

Ginger Reeder, spokeswoman for Dallas-based Neiman Marcus Group Ltd., said in an email Saturday that the retailer had been notified in mid-December by its credit card processor about potentially unauthorized payment activity following customer purchases at stores. On Jan. 1, a forensics firm confirmed evidence that the upscale retailer was a victim of a criminal cyber-security intrusion and that some customers' cards were possibly compromised as a result.

Reeder says the retailer, which operates more than 40 upscale stores and clearance stores, is working with the Secret Service. She wouldn't estimate how many customers may be affected but said the merchant was notifying customers whose cards it knew were used fraudulently.

"We have begun to contain the intrusion and have taken significant steps to further enhance information security," Reeder said in an email.

The revelations come as Target disclosed Friday that its massive data theft was significantly more extensive and affected millions more shoppers than the company announced in December. The nation's second largest discounter said hackers stole personal information - including names, phone numbers, email and mailing addresses - from as many as 70 million customers as part of a data breach it discovered last month.

The Minneapolis-based Target announced Dec. 19 that some 40 million credit and debit card accounts had been affected by a data breach that happened from Nov. 27 to Dec. 15 - just as the holiday shopping season was getting into gear.

As part of that announcement, the company said customers' names, credit and debit card numbers, card expiration dates, debit-card PINs and the embedded code on the magnetic strip on the back of cards had been stolen.

According to new information gleaned from its investigation with the Secret Service and the Department of Justice, Target said Friday that criminals also took non-credit card related data for some 70 million customers. This is information Target obtained from customers who, among other things, used a call center and offered their phone number or shopped online and provided an email address.

Some overlap exists between the 70 million individuals and the 40 million compromised credit and debit accounts, Target said.

When Target releases a final tally, the theft could become the largest data breach on record for a retailer, surpassing an incident uncovered in 2007 that saw more than 90 million records pilfered from TJX Cos. Inc.

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shy32atlanta Sunday at 6:22 PM

H..It is doubtful that Neiman's Cares.The recent Neiman Marcus data compromise again appears to reveal the desperate state of affairs under Karen Katz CEO. The company claims it doesn't matter if you suffer for a stolen identity from shopping at their store. They had 60,000 notifications their customers information was compromised ,They acted on none of them .

The company is becoming a poster child for poor and often unethical behavior presents many dangers that are avoidable by shopping at a more reputable retailer.

Customers and employees are said to "act like Jews"
Asian Americans are said to look "extra Asian " by its own Management.
Entire Departments may have no Latino employees for years despite having qualified applicants.
The company's "HR" department apparently attempts to conceal this by often only considering them for low level janitorial positions.
Management has called gay male employees "F**s" .
" Fire him he has HIV" was stated by a different Department Manger
That employee working in one of the N.M. restaurants would prepare food without gloves. He used unwashed hands and cut fingers to prepare salads and sandwiches.
It has a questionable food safety record . It may not have followed food safety laws for many years . It has no public statement to suggest otherwise. Blood borne pathogens have not seemed to be of their concern .
A Neiman Marcus employee bled in prepared food through an open wrist bone wound.. When asked by The United States Government to respond, the company stated they are not applicable under the law. OSHA in Washington D.C was notified . The company never directly answered as to why it did not adequately protect its customers. The company shifted the blame to Liberty Mutual Insurance who hasn't ever stated why it never conducted an investigation despite repeated contacts.
In another publicized case Neiman Marcus was implicated in forging fake documents to smear an African American ex employee . Another abusive tactic Neiman Marcus utilizes is to have suspected African American's shoplifting cases moved to different judges courts. . This according to company Management allows an increase in the time they will spend in jail . The company reportedly pays the Court to honor its request to switch judges it deems as not giving lengthy enough sentences based on their skin color. The United States Department of Justice has been made aware of this.
Additional concerns include that the company has failed to pay wages properly and is known for retaliatory issues (Neimanmarcuslawsuit.com)
It now has numerous deserved pending class action lawsuits for the data compromise.
The company claimed that one of it's former manager's is a "pedophile". Interestingly they gave him a positive reference to work at Chuckie Cheese Pizza (Owned by Apollo Management). This despite the fact it is a business aimed at children

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M January 12 2014 at 4:50 PM

Am I mistaken to suggest how this is just one more instance of
"Too big to fail."?
============================
"When Target releases a final tally, the theft could become the largest data breach on record for a retailer, surpassing an incident uncovered in 2007 that saw more than 90 million records pilfered from TJX Cos. Inc."
===========================

Neiman Marcus has formerly hired "the best", but just **maybe** there was some economizing with/during the economic woes that has caught up with them.

As far as other **smaller** retailers go, (including Target), economizing is part and parcel of their business plan, and probably needs some tweaking, (presuming their business survives such a level of data breaches). Management needs to realize just how much any data breach can cost their business, and "harden" the critical parts of their financial transaction links and processing centers.
I admit I have no magic wand to wave over the problem to fix it, but it seems that properly targeted upgrades should be able to solve the problem, and should cost far less than the data breach already cost the retailers in lost business alone.

(Anyone think the banks are going to be alone in taking the direct financial expenses of these data breaches? Did the lawyers put a "recovery clause" in the contracts with the retailers? It costs money/time to replace accounts and cards, and reverse the fraudulent transactions! At the very least, they will likely charge the retailers a larger percentage of the transactions to make up losses from the fraudulent transactions and the expenses of the account/card replacement...)

Then there is the prospect of "closing the barn door after the horses got out".
It *should be* the case that all retailers/banks are checking up on their security set-ups, so, the cost of ANY large breach reaches far beyond just the retailer involved in a breach... After all, (depending on the exact nature of the breach), didn't the banks set the standards for the security of the card rransactions?

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BONT64 January 11 2014 at 8:52 PM

SORRY (NOT) FOR USING ALL CAPS ~ MAYBE I AM VISUALLY IMPAIRED? ~ HMMMMMM... IF CAPITAL LETTERS BOTHER YOU SO BAD THEN REFRAIN FROM READING ANYTHING THAT HAS A CAPITAL LETTER IN IT ~ CAN YOU READ? ~ DO YOU NEED TO LEARN TO WORK ON PUNCTUATION ALSO? JUST WONDERING...? DON'T JUDGE "RABID DUDE"

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1 reply to BONT64's comment
DOUG January 11 2014 at 11:40 PM

Ok, what has this have to do with the article? Well into our nightly bottle of Jack Daniels are we?

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uh34d January 11 2014 at 8:38 PM

Easy fix for the problem people. Quit being lazy and use cash, pay your bills by check or money order and mail the payments in. Keep a credit card handy only for emergencies. No cash, don't buy simply because you've got a gaggle of credit cards...unless it's for medications and you've got no choice. See if you can open a line of credit at your local bank/credit union. Having one to cover a large unexpected expense is better than a credit card charge. People seem to gladly give up all kinds of information about themselves and never think of the potential consequences, which are usually negative.

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3 replies to uh34d's comment
BONT64 January 11 2014 at 7:03 PM

*OOP'S I MEANT TO SAY IN MY EARLIER POST THAT THIS TARGET BREACH HAS COST TARGET $1,110,000.00 SO FAR ~ PLUS ANY FUTURE COSTS THAT THYE WILL INCUR AS THEY TRY TO SAFEGUARD THEIR GUESTS/CUSTOMERS INFORMATION BY MONITORING THE POPULATION IN ANYWAY POSSIBLE ~ CONTINUING TO FIGHT BACK TO LEARN HOW ALL BREACHED INFORMATION WAS OBTAINED AT THIS LARGE CAPACITY & TRYING THEIR HARDEST TO REMAIN STEADFAST IN HELPING SECURE THEIR CUSTOMERS IN ALL WAYS POSSIBLE ~ ALL OF THESE HACKING SITUATION'S & PRIVATE INFORMATION ARE AN INVITATION IN THIS WORLD NOW A DAYS ~ TRULY A "WAKE UP CALL" TO THE WORLD

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BONT64 January 11 2014 at 7:03 PM

SNAP-CHAT WAS ADVISED AT FIRST IN AUGUST OF 2013 ~ NIEMAN MARCUS WAS ADVISED OF THEIR HACK IN MID DECEMBER ~ BOTH COMPANIES CHOSE TO IGNORE THE SITUATION ~ DO NOTHING ABOUT THE BREACHES ~ UNTIL MAYBE FORCED TO FINALLY TELL TRUTH?(IF YOU READ THE ARTICLE I POSTED RE:THEIR HACK I READ LAST NIGHT) ~ THEY ARE TOO WORKING WITH THE SECRET SERVICE ~ JUST LIKE TARGET ~ BUT, DECLINE "ANY COMMENT'S AT THIS MOMENT" ~ AGAIN ~ TARGET WAS FORTHRIGHT IN ANNOUNCING THIS AS SOON AS THEY KNEW & COULD ~ IT HAS COST THEM OVER $110,000.00 AS OF THIS MOMENT WITH MORE COSTS TO COME ~ NOT TO MENTION THE DRMATIC DROP IN HOLIDAY/CURRENT SALES FOR THEM ~ BECAUSE THEY ARE TRYING TO FIX THIS FOR ALL THEIR GUESTS FIRST ~ AT LEAST THEY PUT IT RIGHT OUT THERE ~ "HONESTY IS THE BEST POLICY AT ANY COST" ~ I BELIEVE THAT IS TARGETS MISSION ~ THEY HAVE DONE ALL THEY CAN SO FAR THUS TO DATE FOR ANYONE WHO SHOPPED THEIR STORES & I BELIEVE WILL CONTINUE TO DO SO TO MAKE THIS AS RIGHT AS POSSIBLE FOR CONSUMERS ~ THYE ARE STILL #1 IN MY BOOK & HAVEN'T LOST MY BUSINESS ~ PRAYING FOR THEM THEY COME OUT OF IT ~ WONDER WHAT'S HIDING IN WAL-MARTS CLOSET?

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BONT64 January 11 2014 at 7:02 PM

WHAT??? ~ ANOTHER HACKER SURPRISE??? ~ UNBELIEVABLE ~ MY 2 DAUGHTERS I-PODS ~ (WHICH THEY USE FOR SNAP-CHAT OCCASIONALLY & I JUST LEARNED WHAT SNAP CHAT WAS A WEEK AGO ~ THAT YOU CAN ACTUALLY SEE THE PERSON WHILE CHATTING VIA I-POD & IT ONLY "STAYS IN CYBER AIR FOR 5-10 SECONDS") ~ WAS HACKED INTO ~ NAMES & PHONE NUMBERS POSTED ~ WOW ~ THAT QUICK IN 5-10 SECONDS? ~ THEIR CHAT & FACES WERE SUPPOSED TO "PERMANENTLY DELETE" RIGHT AFTER SENDING ~ 1 OF MY DAUGHTERS ACCOUNTS & PHONE NUMBERS WAS COMPROMISED ~ 1 WASN'T ~ THEY ARE BOTH TEENAGERS AND DECIDED TO "DELETE THEIR SNAP-CHATS THEMSELVES" AFTER WE LEARNED ABOUT THIS ON THE NIGHTLY NEWS & CHECKED INTO IT ON THE WEB. THIS AFFECTS MANY CHILDREN/KIDS ~ SICK BA$T....~ NOW THEY ARE BOTH CONTEMPLATING DELETING THEIR FACEBOOK ACCOUNTS!!! ~ BY THEIR OWN DECISION/ADMISSION ~ I AM LETTING THEM DECIDE ~ IT'S TRUE THAT YOU PROBABLY INTERACT ON FACE BOOK WITH 20-30 PEOPLE YOU KNOW ~ BUT ENDING UP "CONNECTING WITH THOUSANDS OF OTHERS YOU DON'T KNOW"? ~ TODAYS WORLD IS ONLY GOING TO GET WORSE WITH ALL THIS "CYBER CRAP" ~ SOON WE WILL ALL BE "CHIPPED LIKE ANIMALS ARE" TO GET TO THEIR RIGHTFUL OWNERS IF LOST ETC... ~ I GUESS HACKERS & THE GOOD OLE U.S.A. ARE "OUR OWNERS" ~ YOU DECIDE...

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BONT64 January 11 2014 at 7:01 PM

ACTUALLY I READ THIS ARTICLE ON NBC NEWS LATE LAST NIGHT 1/10/14 ~ HMMMM... THEIR KEEPING THEIR "NAME/FACE/TRUTH" HIDDEN BEHIND TARGETS HACK ~ COWARDS

Neiman Marcus said Friday that some customers' credit cards were compromised in a security breach, but it provided scant detail on the scope of the hack.

The data attack on the upscale department store chain was revealed on the same day that big-box retailer Target announced the number of its customers affected by a breach had swelled from 40 million to 70 million.

Neiman Marcus did not say how many of its customers might have been victimized by a "criminal cyber-security instrusion" it confirmed Jan. 1 — up to two weeks after an alarm was raised by its credit-card processor.


--------------------------------------------------------------------------------

"Neiman Marcus was informed by our credit card processor in mid-December of potentially unauthorized payment card activity that occurred following customer purchases at our Neiman Marcus Group stores," the company said in a statement.

A forensics firm retained to investigate the situation confirmed the hack and found "that some customers' cards were possibly compromised as a result."

"We have begun to contain the intrusion and have taken significant steps to further enhance information security," the statement said.

Neiman Marcus said it is working with the U.S. Secret Service and trying to notify customers "whose cards we know were used fraudulently after making a purchase at our store."

Spokeswoman Ginger Reeder said she could not provide any other information, including how many cards may have been affected and if it was a nationwide issue.

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BONT64 January 11 2014 at 7:01 PM

NEIMAN MARCUS HACK AFFECTED CUSTOMERS' CREDIT CARDS

OH MY OH MY ~ REALLY? ~ I'M TOTALLY IN SHOCK HERE ~ JUST READ ON NBC NEWS 15 MINUTES AGO ~ NEIMAN MARCUS FOUND OUT ALMOST A MONTH AGO BUT JUST CAME OUT WITH IT NOW? HIDING BEHIND TARGETS FORTHRIGHT HONESTY TO THE ENTIRE PUBLIC A.S.A.P. ~ BECAUSE IT MAY HAVE CUT INTO THEIR CHRISTMAS SALES? KUDOS ~ ^5 ~ TO/FOR TARGET TELLING THE TRUTH ~ RIGHT IN THE MIDDLE OF THE "BUSIEST SHOPPING PROFITABLE SEASON OF THE YEAR" ~ NBC NEWS STORY OF THEIR HACK MY NEXT POST ~ shhhhhhhhh....mums the

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purpledoves69 January 11 2014 at 6:54 PM

Has this world gone crazy? I believe there will be more cyber attacks on other major businesses. This is just like the physical attacks with bombs and such being done to put fear in people and create unrest. I believe this is Obama's doing with our money paying for it. I also believe it is being done by the Black Muslim Brotherhood who wishes as does Obama to take over the USA with martial law and total government control done with a lot of more fear tactics to follow. I might be wrong, but my gut feeling is this is a game of "conquer through fear and not even have to shoot a gun" to take over this country. Look at all the new rules in government of what is allowed and what is not. Look how our freedoms are being taken away and the Constitution being destroyed. We need this man out of office and also he can hold no other government position and he should go to jail for treason, theft and a long list of other wrongdoing against this country. He seems to think "HE" can make all the changes he wants and we are to stand by and do nothing but "OBEY". Impeach Obama and put him in jail where he and others like Holder belong.

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