Inside the Target Security Breach

Is it safe to use your credit card in the U.S.?

The Largest Security Breach in the Nation - The United States is one of most sought after targets for credit-card hackers in the world, mainly due to the easy to decode magnetic strip used to store personal information on credit cards. As a result of Target’s credit card security breach, which exposed the personal information of millions of Americans, many are demanding answers for consumers. Keep reading to find out the latest details and how the security breach could affect you. — Dominique Zonyéé (@DominiqueZonyee)(Photo: Spencer Platt/Getty Images)

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The Largest Security Breach in the Nation - The United States is one of most sought after targets for credit-card hackers in the world, mainly due to the easy to decode magnetic strip used to store personal information on credit cards. As a result of Target’s credit card security breach, which exposed the personal information of millions of Americans, many are demanding answers for consumers. Keep reading to find out the latest details and how the security breach could affect you. — Dominique Zonyéé (@DominiqueZonyee)(Photo: Spencer Platt/Getty Images)

Target - Target broke the trust of more than 40 million customers who visited the store from Black Friday through Dec. 15 when it announced on Dec. 20 that credit and debit card information and possibly the social security numbers were at risk of being exposed to hackers. The security breach marked the largest of its kind in America.(Photo: REUTERS/Anthony Bolante)

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Target - Target broke the trust of more than 40 million customers who visited the store from Black Friday through Dec. 15 when it announced on Dec. 20 that credit and debit card information and possibly the social security numbers were at risk of being exposed to hackers. The security breach marked the largest of its kind in America.(Photo: REUTERS/Anthony Bolante)

What Went Wrong? - Typically credit card hackers attack company databases where personal information is stored, but according to James Wester, research director of IDC Financial Insights, the Target attack likely involved an attack on Target's point-of-sale (POS) system. (Photo: AP Photo/Phil Coale, File)

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What Went Wrong? - Typically credit card hackers attack company databases where personal information is stored, but according to James Wester, research director of IDC Financial Insights, the Target attack likely involved an attack on Target's point-of-sale (POS) system. (Photo: AP Photo/Phil Coale, File)

How Do Credit and Debit Cards Work? - When you swipe your card to make a purchase at a store, immediately an electronic conversation between your bank and the store’s bank begins. The store's bank, which pays the store right away for the item the customer bought, needs to make sure the customer's bank approves the transaction and will pay the store's bank. On average, the conversation takes 1.4 seconds.(Photo: Joe Raedle/Getty Images)

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How Do Credit and Debit Cards Work? - When you swipe your card to make a purchase at a store, immediately an electronic conversation between your bank and the store’s bank begins. The store's bank, which pays the store right away for the item the customer bought, needs to make sure the customer's bank approves the transaction and will pay the store's bank. On average, the conversation takes 1.4 seconds.(Photo: Joe Raedle/Getty Images)

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What Type of Information Is Stored on a Credit or Debit Card? - U.S. credit cards rely on a magnetic strip (the black stripe) on the back of the card, which uses the same technology as cassette tapes.  Magnetic strips store your primary account number, the user's name, a country code, an expiration date for the card and several characters of information. (Photo: PhotoAlto/Frederic Cirou/Getty Images)

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Is the Magnetic Strip Easy for Hackers to Decode? - Most countries such as China, the U.K., and Canada use chip and PIN technology, which is harder for hackers to decode. As oppose to swiping, you put the card into a terminal then enter a PIN or sign your name. (Photo: Fort Worth Star-Telegram/MCT /Landov)

Finalize Your Receipts - Leaving the tip line blank is a big no-no! Always draw a line through it, especially if you don’t intend to leave a tip on your card. You don’t want to risk having miscellaneous charges unknowingly added. (Photo: RK Studio/Blend Images/Corbis)

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Is Credit Card Security an Issue? - Despite global credit and debit card fraud hitting a record $11.27 billion last year, the card system in the U.S. remains outdated.  On average 11,571,900 Americans report identity theft annually.(Photo: The Press-Register /Landov)

Guns Outside, Please - Target Corp. is asking that people do not bring guns into its stores even in states with open carry laws. "This is a complicated issue, but it boils down to a simple belief: Bringing firearms to Target creates an environment that is at odds with the family-friendly shopping and work experience we strive to create," said interim CEO John Mulligan on the chain's website, The Wall Street Journal reports. The request came after shoppers in Texas strolled armed through Dallas stores. The National Rifle Association in a surprising response said that carrying rifles in stores was "not neighborly" – and then took it back. (Photo: Damian Dovarganes/AP Photo)

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What Is Target Doing About the Security Breach? - Target is working with the Secret Service and the Department of Justice to figure out what caused the security breach. However Target has yet to reveal its findings to consumers. It offered shoppers 10 percent storewide discounts for two days and free credit monitoring. While a company rep claimed there is no evidence that PINs were at risk, consumers still are demanding answers.(Photo: AP Photo/Damian Dovarganes)

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Chase Enforces Limit for Card Holders - Chase and JP Morgan reached out to more than 2 million of its customers on Dec. 21 to alert them of temporary restrictions on their debit and credit cards. Restrictions included a maximum limit of $100 cash withdrawals and $300 in purchases per day. Less than 10 percent of Chase customers are affected, a Chase spokeswoman confirmed.(Photo: Chris Hondros/Getty Images)

Photo By Chris Hondros/Getty Images

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Card Companies Monitor for Fraud - Target gave Visa, MasterCard, Discover and American Express the card numbers of those who may have been impacted, so that they could monitor the cards for fraud.(Photo: Spencer Platt/Getty Images)

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Breach Prompts Federal Investigation - U.S. Sens. Charles Schumer and Richard Blumenthal are appealing to the Consumer Financial Protection Bureau and the Federal Trade Commission for an investigation into Target’s security measures. “It appears that Target may have failed to employ reasonable and appropriate security measures to protect personal information," Sen. Blumenthal said. (Photo: Win McNamee/Getty Images)

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Breach Prompts Federal Investigation - U.S. Sens. Charles Schumer and Richard Blumenthal are appealing to the Consumer Financial Protection Bureau and the Federal Trade Commission for an investigation into Target’s security measures. “It appears that Target may have failed to employ reasonable and appropriate security measures to protect personal information," Sen. Blumenthal said. (Photo: Win McNamee/Getty Images)

Secret Service Vows to Get to the Bottom of it - The Secret Service, which safeguards the nation's financial systems, said it was investigating. New York Attorney General Eric Schneiderman pledged to investigate on Friday saying "the cause of this issue has been addressed and you can shop with confidence at Target.”(Photo: Mark Wilson/Getty Images)

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Secret Service Vows to Get to the Bottom of it - The Secret Service, which safeguards the nation's financial systems, said it was investigating. New York Attorney General Eric Schneiderman pledged to investigate on Friday saying "the cause of this issue has been addressed and you can shop with confidence at Target.”(Photo: Mark Wilson/Getty Images)

Target Shoppers File Suit - Target shoppers in California filed a class action suit claiming Target “failed to implement and maintain reasonable security procedures and practices." Shoppers in Portland and South Dakota and a small business in Chicago have also filed lawsuits.  (Photo: Scott Olson/Getty Images)

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Target Shoppers File Suit - Target shoppers in California filed a class action suit claiming Target “failed to implement and maintain reasonable security procedures and practices." Shoppers in Portland and South Dakota and a small business in Chicago have also filed lawsuits.  (Photo: Scott Olson/Getty Images)

Is The U.S. an Easy Target? - The recent Target security breach may be the largest, but other major companies have also been the subject of hackers. A year ago, online shoe store Zappos.com was hacked, exposing the personal data of 24 million customers. In June, the networking site LinkedIn confirmed that a major security breach corresponding to LinkedIn accounts compromised users’ passwords.(Photo: AP Photo/Charles Rex Arbogast, File)

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Is The U.S. an Easy Target? - The recent Target security breach may be the largest, but other major companies have also been the subject of hackers. A year ago, online shoe store Zappos.com was hacked, exposing the personal data of 24 million customers. In June, the networking site LinkedIn confirmed that a major security breach corresponding to LinkedIn accounts compromised users’ passwords.(Photo: AP Photo/Charles Rex Arbogast, File)

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What Do I Do If My Card Was Hacked? - While the U.S. may be behind in credit card technology in regards to the magnetic strip, it is much easier for victims of credit card fraud to make a claim. For example, if your card is hacked you can simply call your bank or card holder to begin an investigation, whereas in the UK customers must make claims in writing.(Photo: Blend Images/Hill Street Studios/Getty Images)

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The Future of American Credit and Bank Cards - Credit card companies plan to replace magnetic strips with digital chips by the fall of 2015.(Photo: REUTERS/Stelios Varias)