Hackers Infiltrate Jimmy Johns

Sandwich restaurant chain Jimmy John’s said there was a potential data breach involving customers’ credit and debit card information at 216 of its stores and franchised locations on July 30.

An intruder stole log-in credentials from the company’s vendor and used the credentials to remotely access the point-of-sale systems at some corporate and franchised locations between June 16 and Sept. 5, the company said.

The chain is the latest victim in a series of security breaches among retailers such as Target Corp, Michaels Stores Inc and Neiman Marcus.

Home Depot Inc  said last week some 56 million payment cards were likely compromised in a cyberattack at its stores, suggesting the hacking attack at the home improvement chain was larger than the breach at Target Corp.

More than 12 of the affected Jimmy John’s stores are in Chicago area, according to a list disclosed by the company.

The breach has been contained and customers can use their cards at its stores, the privately held company said.

Jimmy John’s said it has hired forensic experts to assist with its investigation.

“Cards impacted by this event appear to be those swiped at the stores, and did not include those cards entered manually or online,” Jimmy John’s said.

The Champaign, Illinois-based company said stolen information may include the card number and in some cases the cardholder’s name, verification code, and/or the card’s expiration date.

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Woman Sues LinkedIn

An Illinois woman has filed a $5 million lawsuit against LinkedIn Corp, claiming that the social network violated promises to consumers by not having better security in place when more than 6 million customer passwords were stolen.

The lawsuit, which was introduced in federal court in San Jose, California, on June 15 and seeks class-action status, was filed less than two weeks after the stolen passwords turned up on websites frequented by computer hackers.

The attack on Mountain View, California-based LinkedIn, an employment and professional networking site with more than 160 million members, was the latest massive corporate data breach to have attracted the attention of class-action lawyers.

A federal judicial panel last week consolidated nine proposed class-action lawsuits in Nevada federal court against online shoe retailer Zappos, a unit of Amazon.com, over its January disclosure that hackers had siphoned information affecting 24 million customers.

The LinkedIn lawsuit was filed by Katie Szpyrka, a user of the website from Illinois. In court papers, her Chicago-based law firm, Edelson McGuire, said LinkedIn had “deceived customers” by having a security policy “in clear contradiction of accepted industry standards for database security.”

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Microsoft Seizes Botnet Servers

Microsoft Corp scored a win in efforts to fight online banking fraud, saying it had seized several servers used to steal login names and passwords, disrupting some of the world’s most sophisticated cybercrime rings.

The software giant said on Monday that its cybercrime investigation group also took legal and technical actions to fight notorious criminals who infect computers with a prevalent malicious software known as Zeus.

By recruiting computers into networks called botnets, Zeus logs the online activity of infected machines, providing criminals with credentials to access financial accounts.

“We’ve disrupted a critical source of money-making for digital fraudsters and cyber thieves, while gaining important information to help identify those responsible and better protect victims,” said Richard Boscovich, senior attorney for the Microsoft Digital Crimes Unit, which handled the investigation in collaboration with the financial industry.

Microsoft’s Digital Crimes Unit is worldwide team of investigators, lawyers, analysts and other specialists who fight cybercrime. A year ago they helped U.S. authorities take down a botnet known as Rustock that had been one of the biggest producers of spam e-mail. Some security experts estimated that in its heyday Rustock was responsible for half the spam in junk email bins.

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