Today Target (NYSE:TGT) announced a variety of actions in an effort to enhance its security, including a deal with MasterCard (NYSE:MA) to offer its credit cards with EMV technology. In addition it also named a new executive, Bob DeRodes, to be its chief information officer and enhance its data security efforts.
"Establishing a clear path forward for Target following the data breach has been my top priority," noted the chairman, president and CEO of Target, Gregg Steinhafel, in the press release. "I believe Target has a tremendous opportunity to take the lessons learned from this incident and enhance our overall approach to data security and information technology. Bob's history of leading transformational change positions him well to lead our continued breach responses and guide our long-term digital strategy."
The agreement with MasterCard will in turn result in all existing Target credit cards to be reissued and replaced by 2015 with the EMV, or chip-and-PIN technology. In addition, all the Target-branded credit and debit cards will be issued with the technology beginning in 2015.
This technology enhances security and results in the cards generating unique data for each purchase, which in turn makes it more difficult to both create counterfeit cards and steal data.
"Target and MasterCard are taking an important step forward in providing consumers with a secure shopping experience, and the latest in payments technology," added MasterCard's president of Chris McWilton in the announcement. "Our focus, together with Target, is on safety and security and a good consumer experience."
Earlier this year Target announced a $100 million plan to enhance the security of its payment terminals through the use of chip-enabled technology in the nearly 1,800 stories in the U.S. The company noted today it will be six months ahead of schedule in these efforts, as all stores will have the new payment solutions by September of this year.
The new CIO, Bob DeRodes, is coming to Target from previous positions surrounding information technology and data security, including acting as an advisor to both the U.S. Department of Homeland Security and Justice, as well as private enterprises like Home Depot and Delta.
"I look forward to helping shape information technology and data security at Target in the days and months ahead," DeRodes said to conclude the announcement. "It is clear to me that Target is an organization that is committed to doing whatever it takes to do right by their guests."
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