Breach at Michaels Stores Extends Nationwide — Krebs on Security
Earlier this month, arts & crafts chain Michaels Stores disclosed that crooks had tampered with some point-of-sale devices at store registers in the Chicago area in a scheme to steal credit and debit card numbers and associated PINs. But new information on the investigation shows that many Michaels stores across the country have discovered compromised payment terminals.
It also is not clear yet how the fraudsters compromised the POS
devices, or whether the devices were tampered with in-place, or were
replaced with pre-compromised look-alikes. But investigators say the
fraudsters have used the stolen data to create counterfeit cards that
are used in tandem with stolen PINs to withdraw funds from ATMs.
Detective Jeff Stolzenburg of the Libertyville
Police Department just north of Chicago, said most of the fraudulent
withdrawals have taken place at cash machines in Las Vegas and other
parts of the West. Stolzenburg estimates that actual card losses from
the fraud are now in the millions of dollars, and said that the
investigation has since been turned over to the U.S. Secret Service.