Target Data Breach Highlights Importance Of Insuring Cyber Risks

While cyber risks are sometimes thought of as "online" or Internet risks, a massive information theft recently occurred at Target's brick-and-mortar stores when customers swiped cards and entered PINs while making in-store purchases. On December 19, 2013, Target disclosed that it was the victim of a serious data breach from at least November 27 to December 15 of 2013. More than 40 million debit and credit card numbers were stolen. Hackers stole customer names, card numbers, card expiration dates, the embedded codes on the magnetic strips on the backs of cards, and in some cases PINs for debit cards used at Target.

The card information has reportedly already begun to flood the black market, selling for between $20 and $100 per card. Target has stated that it will offer free credit monitoring services to affected customers.