Home Depot (NYSE:HD) struggling after Security Breaches
Home Depot’s (NYSE:HD) shares dropped prior to Tuesday after the payment systems confirmed to have been hacked. This exposed millions of shoppers that used both debit and credit cards in its Canadian and U.S. stores.
This breach may turn out to be one of the largest in the history of credit card hacks. The company did not say how many of the card numbers were compromised however, the home improvement business reported that its investigation went far back to April this year.
The CEO and chairman, Frank Blake, said in one of his press releases that the company apologizes to its customers for the chaos that was created and that they thank all their customers for all the support they have extended and their patience while they work on fixing the issue.
Home Depot (NYSE:HD) currently stands as the latest retailer in data breaches with other like Neiman Marcus, Target (NYSE:TGT), Supervalu, Goodwill and P.F. Chang now becoming much smaller in magnitude.
Target (NYSE:TGT) disclosed one of the latest data breaches in history that stands currently as the second with the theft of about 40 million in debit card as well as credit card numbers; not to mention potential exposure in personal information resulting in exposing nearly 70 million of its shoppers.
John Kindervag, the Forrester Research analyst, reported that Home Depot (NYSE:HD) may have compromised the same number of cards or shoppers due to the fact that the data from various months amounted to a huge number.
His opinion in an interview was that people may believe this breach to be bigger than Target’s (NYSE:TGT) if not of the same magnitude.
Shoppers are in complete shock with the breaches happening everywhere as their confidence has been shattered regarding privacy due to which the pressure on respective retailers has increased; regarding credit card security in order to make sure that their customers feel safe.
Banks, card companies and retailers responded to all the breaches quickly by jumping to use microchips in debit and credit cards in the U.S thus ensuring much more safe transactions. The home improvement retailer stated that malware was adopted in this hacking scheme hence it aims to adopt checkout terminals that are chip-enabled by the end of this year as a counter measure.
The Target (NYSE:TGT) hurt the company to such an extent that both revenue and profits were slashed which resulted in both the CIO and CEO of the company stepping down after months of the hack. With Home Depot’s (NYSE:HD) fallouts, the company must work harder as a decrease in shares by 41 cents has sent its stock to $90.41.
Prior to the breach, Home Depot (NYSE:HD) reported in August that Blake would step down from the position of CEO on the first of November. Craig Menear will be replacing him as the company president for the retail operations in the U.S. Let’s see how this turns out for the company where its prospects and data safety strategies are concerned.