Morning Money Memo…
Target is facing a big backlash from angry customers on its Facebook page. Potential victims of credit card theft after a security breach complained they had trouble contacting Target through its website and call centers. “Why don’t you just cancel everyone’s card and then spend your man power reissuing them to everyone since none of us can get through using the number or website,” said one angry message at Target’s Facebook site.
The retailer sent emails to customers acknowledging that data connected to about 40 million credit and debit card accounts was stolen as part of a breach that began over the Thanksgiving weekend. The theft is the second-largest credit card breach in U.S. history, exceeded only by a scam that began in 2005 involving retailer TJX.
Target apologized to shoppers in its email, and urged them to “remain vigilant for incidents of fraud and identity theft by regularly reviewing your account statements and monitoring free credit reports.” Customers were urged to report any “suspicious or unusual activity” in their accounts to their banks and credit card companies.
The data breach is a blow to Target at the height of the holiday shopping season. The company could face a series of investigations and potential legal problems. New York Attorney General Eric Schneiderman and Massachusetts Attorney General Martha Coakley both issued statements saying they’re asking Target for more information about the breach and whether proper safeguards were in place.
Nike is running away from the competition. The world’s largest athletic goods maker reports a jump in earnings. Quarterly profits rose 40 percent compared with the year before on higher sales and prices for Nike shoes and other goods
Standard and Poor’s has downgraded the credit rating of the European Union – stripping it of the top grade of AAA. The ratings firm says a bitter battle over the European budget and worsening creditworthiness of its members is behind the decision for a AA rating, which is still considered solid. S&P says the EU’s outlook is stable.
Stock futures rose this morning after Wall Street hit the pause button yesterday. The S&P 500 was down one point after stocks gained the most in more than two months on Wednesday after the Fed’s announcement Facebook fell 1% after announcing the sale of 70 million shares. Most are held by founder and CEO Mark Zuckerberg. Gold is up this morning but is still under $1200 – close to its lowest level in 3 years.
Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesnow