40 million credit cards stolen because a heating contractor had network access. The CIO and CEO resigned. $18.5 million in settlements. The company that knows you're pregnant from your shopping patterns couldn't stop hackers who came in through the air conditioning. Target knew a teenager was pregnant before her father did. Their algorithm figured it out from her purchases — lotion, supplements, cotton balls. Now with Circle and Bluetooth beacons, Target tracks where you walk in the store, what you linger near, and what you buy. The company that predicted pregnancy from shopping patterns is now watching your feet.
What they claim: Target promotes secure shopping and data protection
What we found: The 2013 Target data breach — 40 million credit cards and 70 million personal records stolen — entered through an HVAC vendor's network credentials. Target paid $18.5 million in settlements. The CIO and CEO both resigned. The breach demonstrated that retail loyalty programmes create massive data honeypots.
What they claim: Target promotes Circle rewards as a way to save money on everyday purchases
What we found: Target famously identified a teenager's pregnancy before her father knew, based on purchase patterns (unscented lotion, supplements, cotton balls). The company's predictive analytics assigns a "pregnancy prediction score" to shoppers. Target's 2013 data breach exposed 40 million credit card numbers and 70 million customer records — the breach that entered through the HVAC system. Target Circle now tracks in-store movement via Bluetooth beacons in the app.