Not So Lucky Supermarket Customers Get Hacked

Jon Orlin

Jon Orlin is the Executive Producer and Production Director for TechCrunchTV at TechCrunch. Jon founded the video production studios at Yahoo! and also co-founded the live daily streaming webcast, Yahoo! FinanceVision. Before that, he was an Executive Producer at CNN for many years, overseeing daily news programs. His work at CNN won a Peabody and Emmy Awards. Jon also... → Learn More

Thursday, December 8th, 2011
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Customers who used the self-checkout lanes at Lucky Supermarkets have been hacked. The grocer, which operates stores in California, says some of their credit card machines have been altered with sniffers to capture credit and debit card numbers. Lucky, owned by parent company Save Mart, is telling customers who used those machines to close their bank and credit card accounts. At least 80 at-risk accounts have been identified and the supermarket chain has gotten calls from more than 500 customers who fear they are victims of fraud.

Card-skimming scams have been reported at gas stations and ATMs and retail chain stores. But this appears to be a first widespread attack at a supermarket checkout lane.

A key question remains how criminals could have attached these devices at multiple Lucky locations without anyone noticing. Lucky says at least 24 Bay area stores have been affected.

According to a report in the San Jose Mercury News, Save Mart’s CFO doesn’t think it’s an inside job, saying “It’s pretty well-understood technology. If a bad guy really wanted to go do this, they could probably go online and educate themselves at Google.”

Lucky first got suspicious on November 11th, when an employee doing maintenance noticed something that didn’t look right. They discovered an extra computer board inside the checkout machine recording customer info. Lucky says it warned customers on November 23rd, but it wasn’t aware of any cases of fraud at the time.

The checkout card readers were made by VeriFone, which confirmed there was a problem. The Lucky spokesman told the Mercury News “it was a very sophisticated device that they’d never seen before.” In addition to making credit card readers, VeriFone has a partnership with Google for NFC-based mobile payments.

Save Mart operates 233 stores in Northern California and Nevada under the names Save Mart, S-Mart Foods, Lucky and FoodMaxx brands. Lucky has posted a list of stores affected and information for consumers on their website.


Company: VeriFone Systems
Website: verifone.com
Launch Date: 1981
IPO: November 3, 2005, NYSE:PAY

VeriFone is a global leader in secure electronic payment technologies. They provide solutions, services, and expertise that enable electronic payment transactions and value-added services at the point of sale. Their devices and systems process a broad spectrum of payment types including signature and PIN-based debit cards, credit cards, EMV smart cards, contactless, value-added applications, and signature capture. Their solutions incorporate existing and emerging technologies, comply with the latest global security standards, and take advantage of the latest connectivity options from...

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