Target Now Seeking New CIO To Aid With Security Overhaul
By Anna Rose Welch, Editorial & Community Director, Advancing RNA
Company plans to invest over $100 million in new security technology; new CIO, CCO to guide company through security transformation
Several months after its massive pre-holiday data breach, Target has announced the resignation of its CIO Beth Jacob, effective immediately. In her resignation letter, Jacobs did not indicate that her decision had anything to do with the breach. Rather, she said that, “This was a time of significant transformation for the retail industry and for Target.” The company in the meantime will be seeking an interim CIO to help in its continued efforts to overhaul its security and compliance division. Up until now, various team members carried out the company’s information security functions. The vice president of risk and compliance previously oversaw the CCO duties, however under the new structure, the company plans to separate the assurance risk and compliance responsibilities. In the future, Target plans to initiate an external search for a new CIO and CCO and expects that the new CIO will centralize all the information security responsibilities.
CEO Gregg Steinhafel says, “While we are still in the process of an ongoing investigation, we recognize that the information security environment is evolving rapidly.” Because of these rapid changes, Target says that it is working with Promontory Financial Group in order to evaluate and streamline its technology and other processes during its overhaul.
This news comes just a week after the company announced its disappointing fourth quarter profits, confirming its fears that the data breach has certainly scared customers out of Target stores. Profits and revenue both declined for the company during the recent quarter, though sales are slowly recovering. It will take time for business to pick up, the company expects, though Target has begun working to restore consumers’ faith.
In order to enhance its security, the company announced it is equipping stores with more security technology and will be spending large amounts of money to do so. For one, the company said it would be investing more than $100 million on the adoption of chip-based credit card technology and on the roll out of Target branded smart chip credit and debit cards. It will also be investing $5 million in a new coalition with the Better Business Bureau, National Cyber Security Alliance, and the National Cyber Forensics and Training Alliance. With the help of this new coalition, Target hopes to advance public education on cyber security and the dangers of scams.
CEO Steinhafel also says that the company’s further investigation into the breach will be illuminating for both the company and its customers. “In the weeks ahead, we hope to understand more about how this attack happened. We will use what we learn to inform our guests, make Target a safer place to shop, and to drive change across the broader retail industry."