Tuesday, June 3, 2008

Hannaford upgrades card-security system - First Source - 02 Jun 2008

The grocery store chain installs a new encryption system to guard against the theft of card numbers.

As Hannaford prepares to defend itself in a class-action lawsuit, the company says it continues to make changes to better protect consumers.

Those changes include a stronger system to detect any intrusions into Hannaford's computer network. Hannaford has consulted with experts from General Dynamics Advanced Information Systems, IBM, Cisco and Microsoft to ensure the highest levels of information security, spokeswoman Carol Eleazor said Friday.

''This is all above and beyond the industry standard for retailers,'' Eleazor said.

Hannaford, a grocery store chain headquartered in Scarborough, learned Feb. 27 that data thieves had attacked its security system beginning Dec. 7, 2007. When the company announced the breach to the public March 17, officials said they were aware that 1,800 cards had experienced fraudulent charges.

The Secret Service is investigating the massive data theft.

Most of the security upgrades were announced by Hannaford officials in April, and company staffers are working with contractors to implement the changes, Eleazor said.

Hannaford expects to spend millions of dollars on the changes, but has not disclosed an estimate.
Hannaford is working to install the triple-DES PIN encryption system to guard against theft of customer credit card and debit card numbers.

New PIN pads are being installed at all the Hannaford stores and Sweetbay grocery stores in Florida operated by Hannaford.

''That process will be completed at all Hannaford and Sweetbay stores in the next several weeks,'' Eleazor said.

Since the breach was contained, the company has launched a ''real-time/real people'' security-monitoring program, which provides alerts about any intrusive traffic trying to access the Hannaford network

tmaxwell@pressherald.com

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