How hackers hack corporation network steal over 40 million customers credit and debit card information

A significant real-life hacking incident is the **Target Data Breach of 2013**, where hackers stole credit and debit card information from millions of customers during the holiday shopping season. This breach remains one of the most notable cases of cybercrime against a major retailer, with substantial financial and reputational impacts.

### The Target Data Breach (2013)

#### **Overview**

In 2013, hackers compromised Target Corporation’s network, stealing credit and debit card information from over 40 million customers, along with personal information from 70 million additional individuals. This large-scale breach cost Target hundreds of millions of dollars in damages and fines, severely impacting its reputation.

#### **How the Hack Happened**

1. **Initial Entry: Phishing Attack on a Vendor**:

   - The attack started with a **phishing email** sent to an HVAC (Heating, Ventilation, and Air Conditioning) subcontractor, **Fazio Mechanical Services**, which had access to Target’s network for billing and other administrative purposes.

   - An employee of Fazio Mechanical unknowingly opened a malicious email attachment, allowing the attackers to install malware on their systems. This gave the hackers a foothold to access Target’s internal network.

2. **Gaining Access to Target’s Network**:

   - Once inside Fazio’s systems, the hackers leveraged the connection between the vendor and Target to breach Target’s internal network. They used stolen credentials that were less secure and lacked two-factor authentication.

   - The hackers gained access to Target’s payment processing systems, which handled credit and debit card transactions in real time.

3. **Deploying Malware on Point-of-Sale (POS) Systems**:

   - The attackers installed malware known as **BlackPOS** on Target’s POS terminals across its stores. This malware was designed to capture payment card details directly from the card’s magnetic strip when swiped by customers.

   - The stolen data included credit card numbers, expiration dates, and CVV codes, which were then transferred to a remote server controlled by the hackers.

4. **Exfiltrating the Stolen Data**:

   - The captured card data was periodically collected and sent in bulk to servers in Russia. The hackers used encrypted communication channels to avoid detection by Target’s security systems.

   - Over the course of several weeks, the attackers extracted millions of card details without triggering alarms.

5. **Selling the Data on the Dark Web**:

   - The stolen card information was sold on various dark web marketplaces, where other criminals bought it to commit fraud, make unauthorized purchases, and conduct identity theft.

   - The selling price of each card varied depending on its type and value, generating significant profits for the hackers.

#### **Discovery of the Breach**

- **Late Detection**: The breach was detected in December 2013, when Target was alerted by the U.S. Department of Justice after discovering unusual activity on its network.

- **Public Disclosure**: Target publicly disclosed the breach just before Christmas, causing widespread panic among consumers and leading to a sharp drop in sales during the critical holiday season.

#### **Aftermath and Consequences**

1. **Financial Impact**:

   - Target faced massive financial losses, including direct costs of over $200 million for legal fees, settlements, fines, and security upgrades.

   - The company also spent millions on credit monitoring and identity theft protection for affected customers.

2. **Reputation Damage**:

   - The breach severely damaged Target’s reputation and customer trust, leading to a significant decline in sales and stock price.

   - The company’s CEO and several top executives resigned as a result of the fallout from the breach.

3. **Legal Action**:

   - Target faced numerous lawsuits from banks, credit unions, and customers affected by the breach. They eventually agreed to pay $18.5 million in a multi-state settlement, one of the largest ever for a data breach.

4. **Changes in Security Standards**:

   - The breach led to an industry-wide push for improved cybersecurity measures, including the adoption of chip-and-pin (EMV) technology for credit cards, which offers more security than traditional magnetic strips.

   - Target invested heavily in enhancing its cybersecurity infrastructure, implementing better network segmentation, monitoring, and threat detection systems.

#### **Key Lessons from the Target Data Breach**

1. **Third-Party Risks**: The breach highlighted the risks posed by third-party vendors with access to sensitive systems. Companies must ensure that their partners follow strict cybersecurity practices.

2. **Importance of Network Segmentation**: The hackers were able to move laterally from the vendor’s access point to the payment systems. Proper network segmentation could have contained the breach and limited the damage.

3. **Need for Real-Time Monitoring**: The breach went undetected for weeks, emphasizing the importance of real-time monitoring and alerting systems that can detect unusual activities quickly.

4. **Multi-Factor Authentication (MFA)**: The attackers exploited weak credentials. Implementing MFA could have made it significantly harder for the hackers to gain access.

5. **Customer Data Protection**: The incident underscored the critical need for strong data protection measures to safeguard customer information and prevent widespread data theft.

### **Conclusion**

The Target Data Breach is a prime example of how cybercriminals can exploit weak links in a company’s security, such as third-party vendors, to launch devastating attacks. It serves as a critical lesson on the importance of robust cybersecurity practices, including vendor management, network security, and real-time threat detection, to protect sensitive customer data and maintain trust.