It turns out that Target's data breach is even more massive than the company originally thought.
While desktop computer purchases accounted for the majority of e-commerce purchases this holiday season, the growth of m-commerce during the season was undeniable.
In fact, annual m-commerce sales are expected to reach $707 billion by 2018, representing 30 percent of all e-commerce, according to a new report. The projected growth of the market is not surprising to those of us following m-commerce's developments in the past year alone.
While many of the nouveau creations presented at the world's largest consumer electronics show seem unrealistic, some of them help shape how consumers use technology for years to come. In fact, some of this year's introductions will help facilitate m-commerce and e-commerce sales in the near future.
The future of mobile is here, or at least available to grocery shoppers as Safeway and Giant Eagle roll out Apple's iBeacon, the location-sensing technology that connects to shoppers iOS devices and sends product suggestions and messages while inside the store.
Developed by InMarket, iBeacon mobile shopping is now available in more than 150 U.S. supermarkets in Seattle, San Francisco and Cleveland, with additional retailers and markets launching in the coming months.
The micro-location technology uses a low-energy Bluetooth signal to enable mobile app experiences with higher accuracy than GPS. Transmitters are placed throughout the store and shoppers who have downloaded the app are detected when they enter. Shoppers who opt-in can be reminded of items a spouse just placed on their shared list, earn loyalty rewards, or be directed to a custom special offer.
While retailers of all types must be diligent in preventing debit and credit card fraud, many small to medium-sized merchants will likely not face the same type of breach as Target experienced in the December heist of 40 million shoppers' credit and debit card data.
Some of the millions of unlucky shoppers who happened to use their credit and debit cards during Target’s (NYSE: TGT) now infamous card heist are still feeling the repercussions of the massive problem.
From before Thanksgiving through December 15, shoppers in Target’s U.S. stores were subject to card hacking that compromised 40 million credit and debit card accounts. Target and investigators are still not saying how the massive, nationwide theft occurred.
Happy New Year! As we kick off 2014, I am pleased to be making an exciting announcement about the future of StorefrontBacktalk.
It has been a year since StorefrontBacktalk became a member of the FierceMarkets family. Over the course of the past 12 months, we have continued to deliver the breaking retail IT news stories, analysis, and opinion pieces you’ve come to expect from the StorefrontBacktalk brand.
After United Parcel Service’s delivery fiasco over Christmas, reporters are speculating that Amazon may fire the delivery service in the future.
A portion of online shoppers across the U.S. said their packages were not delivered by Christmas, even though they ordered their gifts by the dates that Amazon (NASDAQ: AMZN), Walmart.com (NYSE: WMT), and other retailers said they needed to order by to have them shipped in time. Some retailers promised Christmas delivery for shoppers who ordered as late as 11 p.m. on December 23.
In the latest show of support for Bitcoin, Overstock.com (NASDAQ: OSTK) said in late December that it would start accepting bitcoins for payment in June. And some small brick-and-mortar retailers across the U.S. are already accepting the digital currency.
Overstock.com, the largest retailer to throw its weight behind Bitcoin, is reviewing several third-party firms that facilitate Bitcoin transactions, The New York Times reported.
In a commodity system fraught with fraud and ever-changing value, we are surprised to see major retailers jumping on board with bitcoins. Bitcoins can be purchased and exchanged for standard currency, such as dollars, Euros and yen, at bitcoin exchanges. In mid-November, the value of Bitcoins jumped to $900.98 for a single bitcoin and then the value fell just as quickly as it rose.
The FBI is warning retailers about a recent rash of credit card fraud that involves jamming retailer’s satellite signals with – you may want to sit down for this one – simple aluminum foil.
When card systems are down, thieves have been able to purchase cigarettes and high value electronics without paying for them. “If you’re a small business owner, you need to be aware if your credit card system is down and someone is purchasing something, you need to make sure that it’s really down and it’s not something that’s blocking your system,” FBI Supervisory Special Agent Vicki Anderson said on the podcast, “FBI This Week”.
As a longtime retail reporter and advocate, I feel sorry for Target (NYSE: TGT), the subject of perhaps the biggest card heist in U.S. history linked to one retailer.
As a consumer who used my debit card at Target during the doomed November 27 – December 15 time period, I certainly wish my card data had been better protected.
From a retailer’s point-of-view, however, Target is just as much a victim as its shoppers. Week after week, Storefrontbacktalk.com reports on the fact that credit and debit card thieves have become much more sophisticated in their skimming and electronic theft methods. They are simply outwitting retailers’ systems and their employees.
As of December 9, 32 million Americans had not even started their Christmas shopping. That is an overwhelming number of people who are desperately looking for last-minute deals online, trying to avoid the crowded stores.
In fact, a recent National Retail Federation (NRF) survey, conducted by Prosper Insight & Analytics, found that 49.9 percent of shoppers plan to do the rest of their shopping online, the highest percentage in the survey’s 11-year history.
Already, holiday e-commerce spending has set records, topping $19.2 billion as of December 17, a 20.6 percent increase over the same period last year, according to comScore.
It is gratifying when criminals seeking to rip off retailers and consumers are caught and brought to justice. That is exactly what happened last week (December 11), when the U.S. Secret Service and the U.S. Attorney for the Southern District of New York charged 23 individuals with participating in a large-scale counterfeit credit card scheme.
Officials say the criminals obtained more than 1,000 stolen credit and debit card numbers and created counterfeit credit and debit cards with the stolen account information. The group then utilized teams of “shoppers” to make more than $2 million of unauthorized purchases at retail stores located throughout the U.S.
Add Home Depot (NYSE: HD) to the growing list of major U.S retail chains offering same day delivery.
Starting next year, the national home improvement retailer plans to spend at least $300 million on supply chain improvements to increase online sales and offer same day delivery service.
Home Depot plans to open three new fulfillment centers in California, Atlanta and Ohio over the next two years, The Wall Street Journal reported. It will also transform its warehouse technology systems and add same-day delivery service for professional contractors as well as customers who are in the middle of projects and need supplies within hours.
Just this week, Amazon (NASDAQ: AMZN) and PayPal (NASDAQ: EBAY) shored up their future mobile payments businesses by acquiring companies specializing in this area.
Amazon will soon be competing with PayPal, Square, Google (NASDAQ: GOOG) and others already in the mobile payments market with its acquisition of Italian mobile payments startup GoPago.
Home Depot (NYSE: HD), Target (NYSE: TG), Macy’s (NYSE: M) and a host of other merchants and retail organizations are appealing a $5.7 billion settlement in the long-running court battle between retailers and card issuers over interchange fees.
On December 13, Visa and MasterCard agreed to settle the lawsuit filed by retailers in the U.S. District Court for the Eastern District of New York in Brooklyn. The $5.7 billion settlement is considered to be the largest antitrust settlement in history.
Most major retailers reported increased sales this holiday from Thanksgiving through Cyber Monday, thanks in part to m-commerce.
Notably, mobile spending reached $314 million on Black Friday, out of the total $1.512 billion spent online that day, comScore found. Plus, mobile sales accounted for $350 million of Cyber Monday’s $2.085 billion in online sales.
M-commerce sales accounted for nearly 21 percent of total Black Friday online sales and 17 percent of Cyber Monday sales.
And Wal-Mart Stores’ (NYSE:WMT) executives gave thanks for the spike in mobile traffic that greatly benefited their Thanksgiving, Black Friday and Cyber Monday sales. The traffic from mobile devices to Walmart.com between Thanksgiving and Cyber Monday was more than 50 percent of total traffic, up a significant 40 percent from last year, according to Walmart.
More than 20,000 payment cards have been compromised at retailers’ and restaurants’ point-of-sale terminals and servers since August, thanks to a new malware botnet.
The tech that the criminals have used in this case is one of the first-known –and very advanced –botnets targeting POS terminals. The “infections” observed by IntelCrawler in this case allow attackers to corral large numbers of POS devices into a single botnet, Ars Technica wrote on its web site.
“The interface makes it easy to monitor the activities of infected machines in real time and to issue granular commands. In short, they are to POS terminals what ZeuS, Citadel, and other banking trojans are to online bank accounts,” Ars Technica wrote. The code helping to streamline the process has been dubbed StarDust, a major revision of the Dexter malware that targets POS devices.
As we have discussed here before, more retailers are adding technology to track customers’ traffic and purchases in stores, from iBeacons to infrared sensors. The practice is becoming so common, in fact, that the Future of Privacy Forum estimates that around 1,000 small and large retailers are using some type of sensors to monitor the pathways their customers take throughout the store.
Macy’s is the largest and most recent example of a retailer effectively using customer tracking in an attempt to increase customers’ purchases this holiday season. In November, Macy’s installed Apple’s iBeacon technology in certain stores in New York and San Francisco, in partnership with rewards app Shopkick.
Shopkick’s shopBeacons enable shoppers with iPhones and some Android phones to have their Shopkick app “woken” up by a signal from Bluetooth transmitters when they enter Macy’s, even if their phones are in sleep mode, according to The Wall Street Journal. As a customer who has opted in walks through a Macy’s store, they might see special offers based on the products they are near, Cyriac Roeding, Shopkick’s CEO, told the newspaper
This is the first time we have heard of customers of a major national fast food chain being the victims of retail credit card fraud. Hundreds of victims lost thousands of dollars in October and November after thieves use malware to pull the Bojangles customers’ card information, and sold the numbers to a third party. The criminals took the scam of step further, making new cards with magnetic strips (cloned cards).
Investigators say hundreds of customers of at least five Bojangles restaurants in Asheville, Waynesville and Hendersonville, N.C., along with stores in Greenville, S.C. and western Tennessee were impacted.