Information Systems in Organizations

Sally Beauty confirms second payment card breach



Chapter 4 discussed all about e-commerce and a  sub-section discussed how to secure payments in the digital world. This article is about a 2nd information breach that Sally Beauty had in early May.  Last March was when their first attack happened, which included 25,000 customer records.  What happened in that attack was that there was a malware installed on some of the point-of-sale systems and captured “track 2” card data.  On the magnetic strip of a card, track 2 contains the expiration date and card number.  Sally Beauty has not commented on the scope of this attack and will not comment until the investigation is complete.



1) When making a purchase in a store, do you consciously think about the possibility of your credit/debit card information being hacked into? What goes through your head or why does it not go through your head?

2) When making a purchase online, do you consciously think about the possibility of your credit/debit card information being hacked into? What goes through your head or why does it not go through your head?

3) Does hearing about attacks like these alter your opinions about making purchases in stores with cards or purchases online in general?

8 Responses to Sally Beauty confirms second payment card breach

  • Great example Alexandra! Such an emerging risk that shoppers are now having to deal with in the digital world. I used to not consciously think about what exactly that swipe does with my information upon a purchase. But with all of these instances of cyber security failures from big time companies like Sally Beauty, TJX, Sony, Home Depot, etc. it makes me hesitant on every time I swipe my credit card for something. For me personally it has changed my views on shopping and I try not to use my card for anything. I wonder if this will be the same for all consumers eventually and how it will impact shopping in the digital world we experience today.

  • When I make purchase online I always use secured web site. In addition, if it possible I do not give my credit card information. Instead, I use PayPal. Yes, debit card fraud is one of the most serious problem of payment and private information security. People should check their bank balance and transactions daily to detect any fraud.

  • I feel as though articles based on credit card security breaches have become more and more frequent as time has gone on. We live in a society where we feel as though nothing will happen to us and until that something does happen we most likely will not fix our bad habits. I am a victim of identity theft so I am now extra cautious of how I give out any personal information.

    I try to make as many cash purchases as possible to reduce the use of my debit or credit card. I also have “see id” on the back of every credit/debit card I own. Online purchases are always nerve racking. If I do purchase something online (which in online courses we usually have to) I never save my information to the website and I track my banking statements for a few weeks following an online purchase. Call me paranoid but once someone has hold of your information it is a total nightmare to try and get things back to normal, let alone trying to get your money back!

  • Great article abouthow unsafe we really are when it comes to shopping! We do all need to be aware that this can happen anywhere we swipe – Target, Wawa, the gas station… Is it preventable, I am not so sure – so we need to be conscientious about it. I think these breaches may lead to more use of the types of payments like PayPal or apple pay – where you don’t swipe or type in your numbers – but, I am also sure that there is a way around their security as well!

  • I make numerous online purchases a month and it is unfortunate that the fear of identity fraud is always there. As the use of big data continues to grow through ongoing technological innovations, more and more shoppers need to educate themselves in order to be aware of potential threats. I once purchased sports merchandise from a foreign website which resulted in multiple unauthorized credit transactions along with the product never showing up. Since then, I have been extremely hesitant making purchases on untrusted websites and agree with Professor Lavin’s statement regarding the emergence of payment methods similar to PayPal’s. According to chapter 4 in the Pearson text (Enabling Business-to-Consumer Electronic Commerce), “more than 11.6 million consumers in the U.S. became victims of identity theft in 2011.” If more companies mimic PayPal’s “Purchase Protection” feature, which covers misrepresented items, unauthorized payments and undelivered packages, many more customers will be able to shop with a better peace of mind and E-Commerce selling with have a much higher conversion rate.

  • This article reminds me of why I’m always so cautious when making payments with my credit card. Most of the time it, I think about possibilities of having my information stolen, so I try to use it as little as possible and just pay with cash. However, I think I am more cautious when supplying my credit card information online because I have heard more about getting information stolen from supplying it online as opposed to in stores. Therefore, when making an online payment, always look for the lock icon in the address bar to ensure that the web site is protected before giving away my information. But, after reading this article, I will probably be more cautious about using my credit card in stores as well, since it seems to be becoming more popular these days.

  • This is a great article that examines how dangerous it really is to use your card. I almost never carry cash anymore and use my cards to make purchases all the time. I never really think about if my card is going to be hacked when i’m making purchases because I just assume that everyone uses cards to make purchases and that it would be safe. Although there is a chance that my cards could be hacked, I don’t think that i will stop using cards to make purchases because it is more convenient and safer than carrying cash around, especially if you are planning to buy something that costs a lot.

  • We’ve had so many attacks on the customers information this year from many different companies. It is a hassle that our credit card companies have to send us a new card because we had used it one of the stores that were recently hacked. Either way, when i’m making purchases at the store, i try to keep my eye on the card just in case if the cashier is doing the right way. But the technology has evolved to apple pay and it makes the payment a lot more secure than regular visa cards that we carry in the wallet. Soon enough we’ll have digital ID’s that we will carry in our cellphones which would be the only thing we would carry in our pockets.

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