Target Corp.’s chief information officer who was in charge of the chain’s computer systems resigned Wednesday (March 6, 2014) following the massive data breach over the holiday season to which the retailer recently admitted.
It was reported in The Wall Street Journal (“Tech Executive at Target Resigns After Data Breach,” March 6, 2014) that Beth Jacob, the executive in charge of the discounter’s computer systems, is leaving as Target is reported to be working on overhauling its security system. Business Insider reported that changing to a more secure “data chip” and PIN system, similar to what is already used throughout Europe, could cost the retailer $100 million.
Analysts have reported that costs related to the data breach (totaling some $61 million) have been mostly covered by insurance carried by Target. Lary Dignan for Between the Lines reported on Feb. 26, 2014, that $44 million was covered by insurance, but the loss in customer confidence cannot be calculated for Target’s data being hacked into through what has been said to be an air-conditioning firm it used.
“Target’s security system has been criticized by experts who say the retailer’s failure to take basic steps, like walling off its payment system from the rest of its vast network, made it easier for hackers to steal data from 40 million credit-and debit-card accounts during a three-week period last year, beginning with the high-traffic Black Friday shopping weekend,” The Wall Street Journal story reported. It also has been reported that as many as 110 million shoppers may have been affected by the data breach and had their privacy comprised.
In the meantime, The Wall Street Journal is reporting that Target Chief Executive Gregg Steinhafel said the company is looking outside Target for an interim chief information officer to guide the future efforts of the company in this area. The company is said to continue to be investigating how the data breach occurred and to map out a future plan of its security system, which may mean changing the company’s organizational structure “We are undertaking an overhaul of our information security and compliance structure and practices at Target,” Steinhafel said in an emailed statement, according to The Wall Street Journal.
The story also reported that Ann Scovil, vice president of risk assurance and compliance, is leaving Target at the end of March as part of a planned retirement.