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Retailer Forever 21 discloses payment card breach

Posted on November 14, 2017 by Dissent

So far, all I’ve seen is their press release, so it will have to do until we get more details from other sources, but I do wonder what kind of “third party” alerted them to this – was it a third party vendor who had some responsibility for data security or a customer who experienced a problem after their using their card at a store? So far, it sounds like this is a brick-and-mortar  incident and not necessarily compromise of online purchases, but we’ll need to wait for more details, of course:

Forever 21 is notifying its customers that it recently received a report from a third party that suggested there may have been unauthorized access to data from payment cards that were used at certain Forever 21 stores. Forever 21 immediately began an investigation of its payment card systems and engaged a leading security and forensics firm to assist.

Because of the encryption and tokenization solutions that Forever 21 implemented in 2015, it appears that only certain point of sale devices in some Forever 21 stores were affected when the encryption on those devices was not operating. The company’s investigation is focused on card transactions in Forever 21 stores from March 2017 – October 2017. Because the investigation is continuing, complete findings are not available, and it is too early to provide further details on the investigation. Forever 21 expects to provide an additional notice as it gets further clarity on the specific stores and timeframes that may have been involved.

It is always advisable for customers to closely monitor their payment card statements. If customers see an unauthorized charge, they should immediately notify the bank that issued the card. Payment card network rules generally state that cardholders are not responsible for such charges.

We regret that this incident occurred and apologize for any inconvenience. We will continue to work to address this matter. For more information, please visit www.forever21.com/protecting_our_customers.

Category: Business SectorU.S.

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