Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
TARGET DATA BREACH
12
Target Data Breach
Outline
Name: Oshane McDonald
Institution: MIND
Course: Effective Report Writing
Due date: June 23, 2023
Instructor: Dr. Dorie Blackwood
Company Overview
- US retail company
- Founded 1902 in Minneapolis, Minnesota
- 8th largest retailer
- 1800+ stores across the US
Company Overview
Introduction
The purpose of this presentation is to give an analysis of the impact of the 2013 data breach on Target Corporation, it's employees and customers.
Data Breach
What is Data Breach?
Main Causes
Main Causes
- Insider Threats
- Human Error
- Cyber-Attacks
Impacts
- Reputational Risk
- Financial Loss
Impacts
Prevention
Prevention
- Organizational Security Policy through training
- Multifaceted Identity & Access Management
- Data Encryption Techniques
What Happened?
- Between Nov. 27 - Dec. 18, 2013, Target experienced a massive data breach.
- Cyber attackers gained access to Target's computer gateway server through third-party vendor.
- 40 million credit card information and 70 million records of personal information compromised.
- One of the biggest in the retail industry
What happened?
What were the impacts?
Organization
Financial Loss
- Spent $236 Mn on data breach-related cost (net exp. of $146 Mn)
- Stock price fell by 10% after announcement
- 46% fall in net earnings
- EPS decreased from $1.47 to 87 cents
Financial Loss
Reputational Damage
- Customer lost trust in the company
- Brand fell by 35 points (from 26 points to -9) as at Dec. 20, 2013
- Customer perception of brands ranking fell from No. 7 to 21
Reputational Damage
Legal Consequences
- Numerous Lawsuits
- $18.5 million settlement with 47 states and the District of Columbia
Legal Consequences
Employees
- Target laid of 475 employees
- Including Gregg Steinhafel (former CEO) and Beth Jacob (former CIO)
- Training of employees
Customers
- Up to 70 million customers were affected
- Customers were at risk of identity theft and fraudulent charges
Customers
Response
Aftermath/Responses
- Company apologized & offered one year of
free credit monitoring services and 10
percent discounts to affected customers.
- Implementation of new security measures
by increasing investment in cyber-security
- Changes to its leadership team
(appointment of John Mulligan as interim president and CEO)
- Launched a marketing campaign to regain customers loyalty and trust.
Suggestions
- Implementing multi-factor authentication
- Regularly updating software and hardware
- Regularly training employees
- Regularly testing and auditing security measures
Reference
Challenges
- Cost
- Resistance to change
- Complexity
- False sense of security
Reference
1. Testimony of John J. Mulligan (2014, March 26). Protecting Personal Consumer Information from Cyber Attacks and Data Breaches. Http://www.Commerce.Senate.gov
2.Brand Index (2014, January 5). Target perception plummets after data breach. http://www.brandindex.com.
3. Hoffmann, M. (2014, July 16). Amazon Has the Best Consumer Perception of Any Brand. https://www.adweek.com
4. Reuter (2017, May 24). Target Settles 2013 Hacked Customer Data Breach For $18.5 Million. Https://www.nbcnews.com
5. Woodyard, C. (2013, December 22). Target offers 10% off as credit fraud apology. https://www.Usatoday.com.
6. Roman, J. (2014, May 5). Breach Aftermath: Target CEO Steps Down. https://www.databreachtoday.com
7. IBM (n.d.). What is a data breach? Https://www.ibm.com
8. Giannopoulos N. (2014, March 2). Target Invests $100M in Data Security. https://risnews.com/
9. Sen R., Borle S. (2015). Estimating the contextual risk of data breach: An empirical approach (32nd V., pp. 314-341). Journal of Management Information Systems. https://doi.org/10.1080/07421222.2015.1063315