Target Tech Chief Resigns Following Massive Data BreachBy: Jasmine Allen - March 6, 2014
The chief information officer (CIO) of Target Corporation has turned in her resignation following months of a devastating data breach.
Since 2008, Beth Jacob served as executive vice president of technology services and chief information officer of the retail company. She first started out as an assistant buyer at a store division in 1984. Then, in 2002 she became the director of Target’s contact centers.
Most recently, Jacob played a major role in overseeing the company’s latest futuristic technology lab in San Francisco.
According to the Los Angeles Times, Chief Executive Gregg Steinhafel confirmed in a statement Wednesday that they are now looking for a new interim CIO who can “guide Target through this transformation.”
Target announced during the holidays that “40 million payment card accounts were hacked during the pre-Christmas shopping season, and added later that about 70 million customers may have also had their addresses, phone numbers and other information compromised.”
Most customers believed that the one to blame for the breach is Jacob.
Here is an interview featuring Jacob in January 2013:
Some experts feel that her resignation may have been in response to the ever-changing roles that a CIO has to conform to daily. Not only does the public expect them to supervise technology, but also the security of the company systems now that data hacking is gaining momentum.
Jacob apparently left because she felt that it was “time for a change,” but some assume that her departure was definitely provoked by public criticism.
Target’s data theft is reportedly the most notorious scandal ever witnessed in retail history.
“To ensure that Target is well positioned following the data breach we suffered last year, we are undertaking an overhaul of our information security and compliance structure and practices at Target,” he said in a statement, according to the Los Angeles Times.
The corporation is currently working with Promontory Financial Group, which will help them move forward with a $100 million technology and infrastructure renovation. Target plans to implement payment cards designed with encrypted chips. The company expects this new system to improve future security within their information database.
The company continues to suffer from a decline in consumer loyalty. Since last week, they have witnessed their profits fall 46 percent and their revenue by 5.3 percent.
Target’s hacking expenses cost the corporation $61 million, but they’re hoping that insurance will cover most of it.
Here is Steinhafel’s full statement tweeted by a FOX TV reporter:
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