Cyber-thieves target off-price apparel retailer

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Cyber-thieves target off-price apparel retailer

By Deena M. Amato-McCoy - 01/25/2018
National Brands is the retail industry’s latest data breach victim.

The off-price retailer, which operates stores under such banners as Fallas, Factory 2-U and Anna’s Linen’s by Fallas, was hit with a malware attack, which gave unauthorized parties access to payment card information. Based on the company’s investigation, payment cards used at some National Stores’ locations in 2017, from July 16 to December 11, may have been compromised.

While the breach is still under investigation, pilfered card information could include customer names, card numbers, expiration dates and security codes, according to National Brands.

The list of potentially impacted stores includes more than 270 locations in California, New York, Nevada, Texas, Arizona, New Mexico, Illinois, Florida, Oklahoma, New Jersey, Massachusetts, Virginia, North Carolina, South Carolina, Maryland, Wisconsin, Michigan, Ohio, Georgia, and Puerto Rico. Over 90 of the affected stores are in California, followed by Texas, with 45 locations, according to Security Week.

The malware has been removed from the retailer’s payment systems, National Stores said.

Upon detecting the incident, the retailer immediately engaged nationally recognized digital cybersecurity firms to assist with an investigation. National Stores also contacted payment card brands so they could take steps to prevent fraudulent activity on any affected cards.

The FBI was also alerted to the incident, and continues to work with the company to find and hold the malicious actors accountable, according to National Stores.

"We have been working closely with the FBI, cybersecurity experts, and payment card brands to contain the incident and protect our customers' payment cards," said Michael Fallas, the retailer’s CEO.

"No customers will be responsible for any fraudulent charges to their accounts,” he added. “We are in the process of strengthening the security of our point-of-sale systems to prevent this from happening in the future.”

National Stores operates 340 stores under the banners Fallas, Fallas Paredes, Fallas Discount Stores, Factory 2-U, Anna's Linen's by Fallas, and Falas (in Puerto Rico), across 22 states and Puerto Rico.