Schnucks breach exposes 2.4 million cards

S t. Louis-based grocery chain Schnuck Markets Inc. confirmed on April 15, 2013, that approximately 2.4 million credit and debit cards used at 79 of its 100 store locations may have been compromised as a result of a breach of its POS network. The breach occurred between December 2012 and March 29, 2013. According to Schnucks, only track 2 card number and expiration date data were accessed in the breach affecting specific stores in Missouri, Iowa, Illinois and Indiana that Schnucks listed online.

The retailer became aware of fraudulent activity when notified by credit card companies on March 15, 2013, that banks had detected fraud on 12 cards used at Schnucks stores, the company stated. At that point Schnucks launched a forensics investigation through Mandiant Corp., which initially ruled out store employee or POS tampering before detecting indications of a cyber attack on March 28.

In a statement released March 30, Schnucks said it had “found and contained the issue behind the reports of unauthorized access to payment card information” and that it had “taken comprehensive measures designed to block any further access.”

After disclosing the cyber attack, Schnucks Chairman and Chief Executive Officer Scott Schnuck said, “We are cooperating with law enforcement, the Missouri Attorney General’s Office, and the credit card companies to determine the scope and magnitude of this crime and apprehend those individuals making fraudulent purchases.” He added that security enhancements were being implemented to block further attack activity.

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U.N. Passes Sweeping Gun Grab

The United Nations General Assembly on Tuesday signed off on a sweeping, first-of-its-kind treaty to regulate Gun_Bannerthe international arms trade, brushing aside worries from U.S. gun rights advocates that the pact could lead to a national firearms registry and disrupt the American gun market.

The long-debated U.N. Arms Trade Treaty (ATT) requires countries to regulate and control the export of weaponry such as battle tanks, combat vehicles and aircraft and attack helicopters, as well as parts and ammunition for such weapons. It also provides that signatories will not violate arms embargoes, international treaties regarding illicit trafficking, or sell weaponry to a countries for genocide, crimes against humanity or other war crimes.

American gun rights activists, though, insist the treaty is riddled with loopholes and is unworkable in part because it includes “small arms and light weapons” in its list of weaponry subject to international regulations. They do not trust U.N. assertions that the pact is meant to regulate only cross-border trade and would have no impact on domestic U.S. laws and markets.

Critics of the treaty were heartened by the U.S. Senate’s resistance to ratifying the document, assuming President Obama sent it to the chamber for ratification. In its budget debate late last month, the Senate approved a nonbinding amendment opposing the treaty offered by Sen. James M. Inhofe, Oklahoma Republican, with eight Democrats joining all 45 Republicans backing the amendment.

“The Senate has already gone on record in stating that an Arms Trade Treaty has no hope, especially if it does not specifically protect the individual right to bear arms and American sovereignty,” Sen. Thad Cochran, a Mississippi Republican who backed Mr. Inhofe’s motion, said in a statement. “It would be pointless for the president to sign such a treaty and expect the Senate to go along. We won’t ratify it.”

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