Possible Customer Credit Card Security Breach: Neiman Marcus

Neiman Marcus Group Ltd. has announced a possible data breach.

The Dallas-based luxury retailer on Saturday said Neiman Marcus was informed by a merchant processor in mid-December of potentially unauthorized payment card activity. Neiman Marcus spokeswoman Ginger Reeder said the activity was detected following customer purchases at stores.

Reeder said Neiman Marcus is working with federal law enforcement while also conducting its own investigation.

She declined to release how many accounts were possibly compromised and says the retailer has been contacting affected customers. Reeder said Neiman Marcus has also taken steps to further enhance information security.

Neiman Marcus, which operates more than 40 upscale stores plus has clearance centers, was acquired by Ares Management and Canadian Pension Plan Investment Board for $6 billion in October.

The Dallas-based luxury retailer released a statement about the possible security breach.

"Neiman Marcus was informed by our credit card processor in mid-December of potentially unauthorized payment card activity that occurred following customer purchases at our Neiman Marcus Group stores. 

We informed federal law enforcement agencies and are working actively with the U.S. Secret Service, the payment brands, our credit card processor, a leading investigations, intelligence and risk management firm, and a leading forensics firm to investigate the situation. On January 1st, the forensics firm discovered evidence that the company was the victim of a criminal cyber-security intrusion and that some customers’ cards were possibly compromised as a result. We have begun to contain the intrusion and have taken significant steps to further enhance information security. 

The security of our customers’ information is always a priority and we sincerely regret any inconvenience. We are taking steps, where possible, to notify customers whose cards we know were used fraudulently after making a purchase at our store."

Copyright AP - Associated Press
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