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Leading home improvement retailer, Home Depot Inc. ( HD ), after thorough investigation of the recent data breach from its payment systems, revealed that the incident impacted nearly 56 million debit and credit cards.
This makes Home Depot's data breach the second-largest one in recent times as it caused even greater damage than Target Corp's ( TGT ) massive breach last year before Christmas, where hackers robbed about 40 million credit and debit card information. However, the attack trails TJX Companies Inc's ( TJX ) cyber attack in 2007 that affected about 90 million records.
Coming back to Home Depot, the company also disclosed that the malware used in the attack has been completely removed from its U.S. and Canadian networks. Further, to step up the security of its payment systems and safeguard consumer records, the company has rolled out a major payment security project providing superior encryption of payment data at point of sale in its U.S. stores. The company also stated that it aims to extend this project to its Canadian stores at the beginning of 2015.
However, the company said that its Canadian stores are already equipped with EMV "Chip and PIN" technology that provides enhanced security. Home Depot also revealed that it is on track to roll out EMV "Chip and PIN" technology to all U.S. stores by the end of this year, ahead of the Oct 2015 deadline established by the payments industry.
Despite the disturbance caused by this breach throughout September, the company estimates sales for the third quarter to remain the same as expected earlier. Driven by third quarter-to-date results, the company reiterated its previous fiscal 2014 sales growth target of 4.8%. Nevertheless, it revised its earnings per share forecast for the year to $4.54 (from $4.52 projected earlier), reflecting year over year growth of nearly 21%.
The company's revised earnings forecast includes estimates for the expenses incurred to investigate the data breach, provide credit monitoring services to its customers, increase call center staffing and pay legal and professional services.
However, the profit guidance does not include the potential losses associated with the breach as the company mentioned that it is yet to estimate further costs that it might incur in relation to the same. These may include liabilities related to payment card networks for reimbursements of credit card fraud and card reissuance costs as well as future civil litigation and governmental investigations and enforcement proceedings.
Home Depot had begun investigating the breach on Sep 2, after being informed by its banking partners and law enforcement about the matter. Since then, the company's internal IT security team has been working with leading IT security firms, its banking partners and the Secret Service to get hold of the situation.
The breach was first reported by security blogger Brian Krebs, who sighted an attack of malware on Home Depot's systems similar to the one that had hacked Target Corp's systems last year.
Apart from Target and Home Depot, other companies, including Michaels, SuperValu Inc. ( SVU ) and Neiman Marcus, have faced system hacking issues amid increased security threats from hackers.
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Home Depot Steps Up Security as Breach Impacts 56M Cards - Analyst Blog
(PRWEB) September 19, 2014
According to a new market research report "Home Automation & Controls Market by Product (Lighting Control, Security Control, Access Control, HVAC Control, Entertainment Control, Outdoor Control, Communication Protocols, Standards & Data Distribution) & Geography (2013 - 2018), the value of home automation &; controls market was worth $19.15 billion in 2012, and is expected to reach $48.02 billion by 2018, at an estimated CAGR of 16.9% from 2013 to 2018.
Browse 91 market data tables with 49 figures spread through 314 pages and in-depth TOC on Home Automation & Controls Market http://www.marketsandmarkets.com/Market-Reports/home-automation-control-systems-market-469.html
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Even though the concept of home automation has been in existence for a long time, the market has witnessed profound growth, mainly, during the last five years. The stringent regulations being imposed by the governments, augmented by the increasing home owners need to save costs, are the primary factors contributing to the growth of this market. The growing awareness about wireless technologies and the developments towards the integration of wired and wireless technologies will propel this market, further, in the future.
The detailed segmentation by product and geography included in the report covers all the major controls and technologies used in home automation. The major control products that have been extensively covered in the report are lighting control, security control, access control, HVAC control, entertainment control, outdoor control, and other controls. Besides, all the major communication protocols such as KNX, DALI, and NEMA, and wired and wireless technologies such as BACnet, LonWorks, ZigBee, EnOcean, Bluetooth, Z-Wave, WI-Fi, and many more have also been discussed in the report. The geographical segmentation involves segregation of the market into various geographical regions, namely: North America, Central America, South America, Europe, Africa, Middle-East, Asia, and Oceania.
The demand for energy efficient solutions coupled with the rising concerns for enhanced security has spurred the market for home automation & controls. This market, which initially started with wired technologies, has now entered the era of wireless technologies with the emergence of technologies such as ZigBee, Z-Wave, EnOcean, and others.
The report is aimed at identifying the entire home automation & controls market; specifically, lighting control, security control, access control, HVAC control, entertainment control, and outdoor control, along with the regional trends. The report covers the overall market and the sub-segments through the extensively detailed classifications in terms of product and geography.
By Product- The major types of products considered for the analysis are:- lighting control, security control, access control, HVAC control, entertainment control, outdoor control, and other controls. Each of the products is further divided into sub-segments. Besides, all the major communication protocols such as KNX, DALI, and NEMA; and wired and wireless technologies such as BACnet, LonWorks, ZigBee, EnOcean, Bluetooth, Z-Wave, Wi-Fi, and many more have also been discussed in the report. Quantitative data containing revenue for each of the product type discussed above is given in the report. Each of the above mentioned product types are also segmented geographically. Thus, the report also covers the regional analysis and product forecasts of critical regional pockets.
By Geography- The geography market is further segmented into regions such as North America, Central America, South America, Europe, Africa, Middle-East, Asia, and Oceania, which gives a detailed insight about the potential regions for the home automation and controls market.
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Home Automation & Controls Market by Product (Lighting Control, Security Control, Access Control & HVAC Control ...
By Jack M. Germain 09/19/14 2:58 PM PT
Home Depot on Thursday said it had excised the malware demon from its computerized payment system after its recent discovery of a security breach in which thieves stole records of 56 million credit cards.
Home Depot stopped short of admitting that an ongoing security upgrade may have contributed to the breach. Efforts to harden the system with enhanced encryption and new technology will not be completed in some areas until early next year.
Cybercriminals used a custom-built malware attack to evade detection for at least five months -- from April to September -- the company said.
The malware had not been seen in other attacks, according to Home Depot's security partners.
The hackers' method of entry is now closed, the company emphasized. Any terminals identified with the malware were taken out of service, and security enhancements were put in place.
"Customers should carefully monitor their statements and take advantage of the free ID protection and credit monitoring we are offering," Paula Drake, a Home Depot spokesperson, told the E-Commerce Times.
Despite the measures taken, Home Depot and its customers could face future consequences from the breach. There is no evidence that debit card PINs were compromised, or that the breach impacted stores in Mexico or customers who shopped online at HomeDepot.com or HomeDepot.ca.
"We don't know if email addresses have been stolen, said Stu Sjouwerman, CEO of KnowBe4. "Probably not. So consumers are probably just dealing with the standard compromised credit card accounts."
This malware attack was a very specific software vulnerability. Once it is plugged, you are OK, he told the E-Commerce Times.
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Home Depot Gives 56 Million Customers a Heads Up