Blue Light is Flashing Again: Another Breach at Kmart

HOFFMAN ESTATES, Ill.–At almost the same time a group of financial institutions, including credit unions, has received a $5.2-million settlement in a class action lawsuit against Kmart over a 2014 data breach, the retailer acknowledged that hackers recently breached the credit card processing system of some of its stores again.

According to a report by security expert Brian Krebs, cards of some Kmart customers could have been compromised. No personal identifying information, including names, addresses, social security numbers, and email addresses, was obtained by the crooks, Kmart’s parent company, Sears Holdings, reported.

“We recently became aware that Sears Holdings was a victim of a security incident involving unauthorized credit card activity following certain customer purchases at some of our Kmart stores. We immediately launched a thorough investigation and engaged leading third-party forensic experts to review our systems and secure the affected part of our network,” the company stated in a report shared by Krebs.

“Our Kmart store payment data systems were infected with a form of malicious code that was undetectable by current anti-virus systems and application controls. Once aware of the new malicious code, we quickly removed it and contained the event. We are confident that our customers can safely use their credit and debit cards in our retail stores,” Sears Holdings continued.

The company did not say how many stores were impacted.

As CUToday.info reported, U.S. District Judge John Lee of the Northern District of Illinois recently approved a $5.2-million settlement for the 2014 Kmart data breach. Greater Chautauqua Federal Credit Union, First Choice Federal Credit Union, Gulf Coast Bank & Trust Company, Governmental Employees Credit Union and Oteen V.A. Federal Credit Union filed the class action in 2015 against Kmart and its parent company.

Section: Standard
Word Count: 354
Copyright Holder: CUToday.info
Copyright Year: 2026
Is Based On:
URL: https://cuto-admin.flux5.ccplatform.net/Fresh-Today/Blue-Light-is-Flashing-Again-Another-Breach-at-Kmart