Establishing Digital Trust: Don't Sacrifice Security for Convenience
On August 6, 2013, Smartphone Experts began notifying an undisclosed number of its customers that a hacker or hackers had accessed the system used to process payments for purchases made on its Web site. The breach was discovered on July 12, 2013 (h/t DataBreaches.net).
"We immediately implemented measures to prevent any further unauthorized access and engaged a leading data security firm to complete an investigation," Smartphone Experts senior vice president Diana Kingree wrote in the notification letter [PDF]. "Although credit card information is encrypted when it is stored in our system, the investigation revealed that the hacker may have had the technical ability to use a decryption feature of the system to view the name, address, credit or debit card account number, CVV code, and the card's expiration date associated with orders in our system."
While Smartphone Experts isn't providing affected customers with any identity protection services following the breach, the company is recommending that customers obtain free copies of their credit reports from each of the three nationwide credit reporting companies.