Banks: Card Breach at Goodwill Industries
Source: KrebsonSecurity 7/21/2014
Heads up, bargain shoppers: Financial institutions across the country report that they are tracking what appears to be a series of credit card breaches involving Goodwill locations nationwide. For its part, Goodwill Industries International Inc. says it is working with the U.S. Secret Service on an investigation into these reports.
Headquartered in Rockville, Md., Goodwill Industries International, Inc. is a network of 165 independent agencies in the United States and Canada with a presence in 14 other countries. The organizations sell donated clothing and household items, and use the proceeds to fund job training programs, employment placement services and other community-based initiatives.
According to sources in the financial industry, multiple locations of Goodwill Industries stores have been identified as a likely point of compromise for an unknown number of credit and debit cards.
In a statement sent to KrebsOnSecurity, Goodwill Industries said it first learned about a possible incident last Friday, July 18. The organization said it has not yet confirmed a breach, but that it is working with federal authorities on an investigation into the matter.
“Goodwill Industries International was contacted last Friday afternoon by a payment card industry fraud investigative unit and federal authorities informing us that select U.S. store locations may have been the victims of possible theft of payment card numbers,” the company wrote in an email.
“Investigators are currently reviewing available information,” the statement continued. “At this point, no breach has been confirmed but an investigation is underway. Goodwills across the country take the data of consumers seriously and their community well-being is our number one concern. Goodwill Industries International is working with industry contacts and the federal authorities on the investigation. We will remain appraised of the situation and will work proactively with any individual local Goodwill involved taking appropriate actions if a data compromise is uncovered.”
The U.S. Secret Service did not respond to requests for comment.
It remains unclear how many Goodwill locations may have been impacted, but sources say they have traced a pattern of fraud on cards that were all previously used at Goodwill stores across at least 21 states, including Arkansas, California, Colorado, Florida, Georgia, Iowa, Illinois, Louisiana, Maryland, Minnesota, Mississippi, Missouri, New Jersey, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, Washington and Wisconsin.
It is also not known at this time how long ago this apparent breach may have begun, but those same financial industry sources say the breach could extend back to the middle of 2013.
Financial industry sources said the affected cards all appear to have been used at Goodwill stores, but that the fraudulent charges on those cards occurred at non-Goodwill stores, such as big box retailers and supermarket chains. This is consistent with activity seen in the wake of other large data breaches involving compromised credit and debit cards, including the break-ins at Target, Neiman Marcus, Michaels, Sally Beauty, and P.F. Chang’s.