Incident: Potential Credit Card Data Breach at Staples due to Malware

Published Date: 2014-10-21

Postmortem Analysis
Timeline 1. The software failure incident at Staples, involving a potential credit card data breach, happened in October 2014 [30934].
System 1. Payment data breach system at Staples [30934]
Responsible Organization 1. Hackers were responsible for causing the potential credit card data breach at Staples as reported in Article 30934. [30934]
Impacted Organization 1. Customers of Staples [30934] 2. Banks who noticed fraud patterns [30934]
Software Causes 1. Malware attached to card payment terminals allowed hackers to steal credit card numbers when customers swiped their cards [30934]. 2. Data-stealing malware was responsible for putting 56 million customer credit cards at risk of theft at Home Depot [30934]. 3. The software vulnerability in the card payment system allowed fraudsters to expose the credit card data of 40 million Target customers [30934].
Non-software Causes 1. Lack of secure chip-and-pin technology in payment cards [30934] 2. Malware being attached to card payment terminals allowing hackers to steal credit card numbers [30934]
Impacts 1. Potential exposure of customer credit card information leading to fraudulent activity [30934] 2. Risk of financial losses for affected customers 3. Damage to the reputation of Staples as a trusted retailer 4. Increased scrutiny and potential loss of trust from customers regarding payment security measures 5. Potential legal and regulatory consequences for Staples regarding data protection and privacy compliance
Preventions 1. Implementing more secure chip-and-pin technology instead of relying on magnetic strip payment cards could have potentially prevented the software failure incident [30934].
Fixes 1. Implementing more secure chip-and-pin technology to replace magnetic strip payment cards as recommended by the government [30934].
References 1. Security reporter Brian Krebs [30934]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident having happened again at one_organization: - Staples is currently looking into a potential credit card data breach, which is similar to what other retailers like Home Depot have experienced in the past [30934]. (b) The software failure incident having happened again at multiple_organization: - The article mentions that other retailers such as Kmart, Target, Neiman Marcus, P.F. Chang's, Supervalu, and Home Depot have also suffered credit card breaches due to malware attacks in the past [30934].
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase can be seen in the article where it mentions that credit card breaches at retailers often occur after malware is attached to card payment terminals, allowing hackers to steal credit card numbers when the buyer swipes. This indicates a failure due to contributing factors introduced by system development or updates, as the malware was likely introduced into the system through some vulnerability or oversight during the development or update process [30934]. (b) The software failure incident related to the operation phase is evident in the article where it states that credit card breaches at retailers often occur after malware is attached to card payment terminals, which allows hackers to steal credit card numbers when the buyer swipes. This indicates a failure due to contributing factors introduced by the operation or misuse of the system, as the breach occurred during the operation of the system when customers were making payments using the compromised terminals [30934].
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident related to the credit card data breach at Staples was likely caused by malware being attached to the card payment terminals within the system. This allowed hackers to steal credit card numbers when customers swiped their cards at affected stores [30934]. (b) outside_system: The contributing factor originating from outside the system in this software failure incident was the actions of hackers who targeted the Staples stores and managed to breach the system by installing malware on the card payment terminals. This external threat led to the data breach and subsequent failure of the system's security measures [30934].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident occurring due to non-human actions: - The article mentions that credit card breaches at retailers often occur after malware, which is a form of malicious software, is attached to card payment terminals. This allows hackers to steal credit card numbers when the buyer swipes [30934]. - The data breaches at various retailers, including Staples, Sears Holdings Corp., Target, Neiman Marcus, P.F. Chang's, Supervalu, and Home Depot, were attributed to data-stealing malware that had avoided detection, putting customer credit card information at risk [30934]. (b) The software failure incident occurring due to human actions: - The article highlights that the credit card breaches at retailers were a result of hackers exploiting vulnerabilities in the systems by attaching malware to card payment terminals, indicating that these breaches were facilitated by human actions of the hackers [30934]. - It is mentioned that the government has called for a move to more secure chip-and-pin technology to avoid such hacks, suggesting that the current reliance on magnetic strip payment cards, which are more vulnerable to exploitation, is a result of human decisions and actions [30934].
Dimension (Hardware/Software) hardware, software (a) The software failure incident related to hardware: - The article mentions that credit card breaches at retailers often occur after malware is attached to card payment terminals, which suggests that the failure could be due to hardware-related issues with the card payment terminals [30934]. (b) The software failure incident related to software: - The article highlights that credit card breaches at retailers occur after malware is attached to card payment terminals, indicating that the failure could be attributed to software-related issues involving the malicious software used by hackers to steal credit card numbers [30934].
Objective (Malicious/Non-malicious) malicious, non-malicious (a) The software failure incident related to the credit card data breach at Staples was malicious in nature. The incident involved malware being attached to card payment terminals, allowing hackers to steal credit card numbers when customers swiped their cards. This malicious act was aimed at stealing sensitive customer information for fraudulent purposes, indicating a deliberate intent to harm the system and compromise customer data security [30934]. (b) Additionally, the article mentions that other retailers like Target, Neiman Marcus, P.F. Chang's, Supervalu, and Home Depot have also experienced data breaches due to malware attacks, indicating a broader trend of non-malicious software failures in the retail industry where contributing factors introduced without intent to harm the system have led to security vulnerabilities and breaches [30934].
Intent (Poor/Accidental Decisions) poor_decisions (a) The software failure incident related to the credit card data breach at Staples was primarily due to poor decisions made by the hackers who introduced malware into the card payment terminals. This malicious software allowed the hackers to steal credit card numbers when customers swiped their cards at the affected stores [30934]. Additionally, the article mentions that other retailers like Target, Neiman Marcus, P.F. Chang's, Supervalu, and Home Depot have also experienced similar breaches due to data-stealing malware, indicating a pattern of poor decisions by hackers targeting these systems.
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident related to development incompetence is evident in the article as it mentions credit card breaches at retailers occurring after malware is attached to card payment terminals, allowing hackers to steal credit card numbers when buyers swipe. This indicates a lack of professional competence in securing the payment systems against such malicious software attacks [30934]. (b) The software failure incident related to accidental factors is highlighted in the article when it mentions that credit card breaches at retailers often occur after malware is attached to card payment terminals, indicating that these breaches are unintentional and not deliberately caused by the retailers themselves [30934].
Duration temporary (a) The software failure incident related to the credit card data breach at Staples can be considered as a temporary failure. This incident was caused by the introduction of contributing factors, specifically malware attached to card payment terminals, which allowed hackers to steal credit card numbers when customers swiped their cards. The breach was not a permanent failure inherent to the system but rather a result of external malicious activity [30934].
Behaviour value, other (a) crash: The software failure incident related to the credit card data breach at Staples does not involve a crash where the system loses state and does not perform any of its intended functions [30934]. (b) omission: The incident does not mention any omission by the system in performing its intended functions at an instance [30934]. (c) timing: There is no indication in the articles that the software failure incident at Staples was related to the system performing its intended functions correctly but too late or too early [30934]. (d) value: The failure at Staples is related to the system performing its intended functions incorrectly, leading to a potential credit card data breach [30934]. (e) byzantine: The incident does not describe the software failure at Staples as involving the system behaving erroneously with inconsistent responses and interactions [30934]. (f) other: The software failure incident at Staples can be categorized as a failure due to a security breach caused by malware attached to the card payment terminals, allowing hackers to steal credit card numbers [30934].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, theoretical_consequence (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident mentioned in the article is a potential credit card data breach at Staples. The breach could have led to the theft of credit card numbers when customers swiped their cards at affected stores. This would have put customers' financial data at risk, potentially leading to unauthorized charges and financial losses [30934].
Domain finance (a) The failed system in this incident is related to the finance industry as it involves credit card data breaches at retailers like Staples, Kmart, Home Depot, Target, Neiman Marcus, P.F. Chang's, and Supervalu [30934]. These breaches occurred due to malware being attached to card payment terminals, allowing hackers to steal credit card numbers when customers swipe their cards. The incident highlights the importance of protecting customer information and the need for more secure payment technologies like chip-and-pin cards.

Sources

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