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Home Depot Inc confirmed on Monday its payment security systems have been breached, a data theft analysts warn could rival Target Corp's massive breach last year.

Home Depot said the data theft could impact its customers in stores across the United States and Canada, but there was no evidence that online customers were affected or debit personal identification numbers (PINs) were compromised.

"We owe it to our customers to alert them that we now have enough evidence to confirm that a breach has indeed occurred," Chairman and Chief Executive Officer Frank Blake said in a statement. "It is important to emphasize that no customers will be responsible for fraudulent charges to their accounts."

The breach was first reported by security website KrebsOnSecurity almost a week ago. It said the problem could extend back to April and affect all of Home Depot's 2,200 stores in the United States.

No details were immediately available on how many customers were impacted. But Brian Krebs, who runs the security website, said last week the breach could be larger than Target's last year when hackers stole at least 40 million payment card numbers and 70 million other pieces of customer data.

Krebs reported on Monday that Home Depot's systems were hit by a variant of the same malware that compromised Targets systems last year.

Target has spent $146 million to resolve data breach-related issues since the fourth quarter of 2013. Most of these expenses were for settling actual and potential breach-related claims, mainly by payment card networks.

The largest known breach at a U.S. retailer was uncovered in 2007 at TJX Cos Inc, operator of the T.J. Maxx and Marshalls chains, which had more than 90 million credit cards stolen over about 18 months.

Home Depot said it started investigating the data breach last Tuesday, but the investigation will look at data from April.

"It doesn't exactly say a lot of good things about their data security systems if something was able to go on for months and they didn't notice," said Kenneth Dort, partner at intellectual property practice group, Drinker Biddle & Reath LLP.

Originally posted here:
Home Depot Confirms Security Breach

There was an air of inevitability about it. Following Home Depots comments last week that itd noticed some suspicious behavior regarding customer data, the home improvement retailer on Monday confirmed that its computer systems have suffered a significant credit card breach.

In comments that will alarm many who have shopped withthe Atlanta-based firm, online security specialistBrian Krebs suggested the breach could be many times larger than the one whichsaw data from 40 million credit cards stolen from Target last year.

Its not clear if the same hackers are behind the attacks, as the malware used was slightly different in each case. Both versions are thought to be variants of the malicious BlackPOS software developed by a 17-year-old Russian man, who reportedly sold his creation to cybercriminals.

The software works to collect data from in-store point-of-sale systems when a credit or debit card is swiped through the reader.

In a release issued by Home Depot on Monday, the company said anyone who used a payment card at one of its brick-and-mortar stores from April onwards is likely to be affected by the breach.

Related: Target CEO resigns following massive data breach

In addition, Home Depot said its continuing investigation suggests that online shoppers are not affected, and no PIN numbers have been taken.The company didnt reveal how many customers have been affected, saying its still working to assess the precise scale of the breach.

Home Depot CEO Frank Blake apologized to customers for the frustration and anxiety the incident was causing, adding, Its important to emphasize that no customers will be responsible for fraudulent charges to their accounts.

Like UPS, which last month confirmed it had also been hit by similarmalware, Home Depot says itsoffering affected customers free identity protection services, including credit monitoring.

Customers who who think they may be victims ofthe Home Depot hack should visit here for more information or call 1-800-HOMEDEPOT (800-466-3337) at the earliest opportunity.

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Cybercrime: Home Depot confirms security breach, could be bigger than Targets

AT&T Inc. (T) signed up Telefonica SA (TEF) as the first carrier to license its Digital Life home-security service, helping the U.S. phone company expand outside the slowing landline and wireless businesses.

Telefonica, the Madrid-based phone company with operations across Spain, the U.K. and Germany, will offer limited trials of the connected home service in Europe, according to an announcement today at the CTIA wireless industry conference in Las Vegas. AT&Ts Digital Life system allows homeowners to control wireless thermostats, surveillance cameras, motion sensors and other appliances through a mobile app.

Looking for growth beyond sales of wireless services to phone and tablet customers, AT&T has targeted areas including home monitoring and Internet-connected cars as potential $1 billion revenue opportunities. The Dallas-based company has been trying to push into the smart-home market since introducing Digital Life more than two years ago, and Telefonica marks the first licensing deal since AT&T said in February 2013 that more than 30 companies worldwide had asked about the product.

Theres been interest on all continents, Glenn Lurie, who was promoted last month to head AT&Ts mobile division, said in an interview. Telefonicas digital team is very innovative, and we are very honored they chose us. It bodes well as other carriers do the same due diligence.

Telefonica is one of a number of overseas carriers that have approached AT&T about licensing the Digital Life technology, Lurie said.

AT&T started selling its home-monitoring service in 15 U.S. cities in April 2013 and is now in 82 cities. AT&T offers the service starting at $39.99 for basic alarm security, plus $149.99 for installation. AT&T hasnt disclosed how many subscribers it has for the service.

To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net

To contact the editors responsible for this story: Sarah Rabil at srabil@bloomberg.net Crayton Harrison

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