Target Reveals Source of Massive Card Hack

Jan 30, 2014 7:58am
ap target credit card ll 131223 Target Reveals Source of Massive Card Hack

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Morning Money Memo

Target, which was hit hard by a recent data breach, says investigators have found that hackers stole credentials from a vendor to access the retailer’s systems. They stole about 40 million debit and credit card numbers as well as personal information for another 70 million people. Spokeswoman Molly Snyder declined to provide further details, such as the vendor’s identity or how the hackers stole the credentials, citing the ongoing the investigation.

New moves by Google, Facebook, Nintendo and Amazon are all reminders of the dizzying pace of change for many businesses.

Less than two years after buying Motorola Mobility for $12.5 billion, Google is pulling back from its bid to make smartphones. The business is being sold to China’s growing hardware-focused Lenovo Group for $2.9 billion.

Google is retaining most of Motorola’s portfolio of mobile patents, providing it with legal protection for its widely used Android software for smartphones and tablets. Lenovo is picking up about 2,000 Motorola patents in addition to the phone manufacturing operations.

Shares of Facebook gained 14 percent in after-market trading after a surprisingly strong quarterly report. The social networking giant earned $523 million compared to just $64 million the year before. Facebook’s forecast for this year blew past previous Wall Street estimates.

Many brick and mortar retailers see Amazon as the enemy. Now the online behemoth is planning to offer traditional retailers a checkout system that uses Kindle tablets. The Wall Street Journal reports that under one plan Amazon would give stores Kindle tablets and credit-card readers, plus other services such as website development and data analysis.

Nintendo has been unable to arrest a slide in console sales as more gamers use smartphones and tablets. The company’s apparent solution? A move into health care. Speaking in Tokyo, Nintendo president Satoru Iwata vowed today to stick to the company’s old ways, refused to resign or cut product prices despite its dismal earnings, but said the video game maker will enter the health care industry. He gave no details.

The stock market has also been buffeted by winds of change. Turmoil in emerging markets and disappointing corporate earnings were blamed for yesterday’s drop. The S&P 500 has fallen 4 percent this month after a stellar 2013.

Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesnow

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