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03/28/2024 04:24:29 pm

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Home Depot Announces 56 Million Cards Compromised by Data Breach

Home Depot

(Photo : REUTERS/BECK DIEFENBACH) Electronic payment station is shown at a Home Depot store in Daly City, California

Home Depot announced on Thursday that 56 million credit and debit cards were affected by the security breach that lasted from April to September, which is evidently larger than the 40 million card-breach on Target last year.

In a statement released by the construction-equipment retail giant, it said customers who were affected by the breach were those who used their cards at store branches in the U.S. and Canada.

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The breach was confirmed by the company on September 8, saying that a malicious software or a malware has infiltrated their system and stole their customers' credit and debit card information.

The malware, called "BlackPOS," was reportedly placed on the store's point of sales terminals and had the ability to copy a card's information as it is being swiped at the register.

According to Home Depot, the malware used in the breach was "custom built" and "unique," as it has not yet been used in any previous attack.

The statement is contrary to previous reports saying that the malware used was the same that attacked Target.

In a statement released by global security strategist Trey Ford of Rapid7 security firm, thieves, including cyber-hackers, put time and effort into studying their targets to find a way to infiltrate the security.

Meanwhile, Home Depot released a statement stating that the malware has already been erased from the system.

Additionally, Frank Blake, CEO and Chairman of Home Depot, issued a public apology for the anxiety and inconvenience that the incident brought to its customers.

Blake reassured those who were affected by the breach that the company will assume financial liability in the event that customers incur losses due to fraudulent charges brought about by their stolen card information.

The  data breach has cost the company an estimated amount of U.S. $62 million, according to Home Depot, adding that it is still expected to rise.

The company is expecting that it will be reimbursed U.S. $27 million because of its insurance coverage.

 Meanwhile, the company said that it has already increased its security network in order to prevent similar incidents from occurring in the future.

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