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TJX Security Breach Described 104

Bunderfeld notes more details coming out about how bad guys got into the TJX network. Last time we discussed this, the best information indicated that a WEP crack had started the ball rolling. Now we learn that instead, or in addition: "Poorly secured in-store computer kiosks are at least partly to blame for acting as gateways to the company's IT systems, InformationWeek has learned. According to a source familiar with the investigation who requested anonymity, the kiosks, located in many of TJX's retail stores, let people apply for jobs electronically but also allowed direct access to the company's network, as they weren't protected by firewalls. 'The people who started the breach opened up the back of those terminals and used USB drives to load software onto those terminals,' says the source. In a March filing with the Securities and Exchange Commission, TJX acknowledged finding 'suspicious software' on its computer systems."
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TJX Security Breach Described

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  • Tchoh (Score:3, Insightful)

    by Gricey ( 154787 ) on Thursday August 16, 2007 @05:28PM (#20255073)
    Sounds to me like incompetence. You're a big company, pay for people to look after your infrastructure... ... I hate it when publicly traded companies cut corners to put that stock price up just a fraction of a nanocent.

    -- incubus
    • Re: (Score:3, Interesting)

      You're a big company, pay for people to look after your infrastructure.

      1. They might do that. Only the problem may not have been in IT per-se. I can easily imagine someone from another department purchasing the kiosks then throwing the request to connect the kiosk to the store's network over the so-called wall to IT. That's just one plausible scenario.

      2. Don't be surprised when the kiosk manufacturer comes back and says, "Hey, I don't provide secured operating systems running on the computer inside th
      • Re: (Score:3, Interesting)

        by Vancorps ( 746090 )

        Sounds simply like an insecure kiosk. A lot of them are Windows based but you only need to setup one to be able to secure them all so the OS excuse doesn't really hold water especially with products like VMWare out there providing solid solutions for this very problem.

        I would also say number 1 is a likely scenario. Marketing made the decision to purchase the kiosks and misrepresented what the kiosk manufacturer was providing so IT let it slide because they're busy working. Course you can also argue that I

        • by dave562 ( 969951 )
          I agree with that assessment. The same thing happened where I work. The store brought in a kiosk from a particular vendor to sell a certain type of merchandise. They needed the thing connected to the network so that it could have Internet access to validate credit card transactions. Nobody bothered to tell us that the damn thing was showing up until it was already here. The attitude from the store people was, "We're just going to plug it into the network. Make it work." We ended up making them pay fo
      • Comment removed based on user account deletion
        • Yes. They Are :) (Score:4, Informative)

          by asphaltjesus ( 978804 ) on Thursday August 16, 2007 @08:46PM (#20256463)
          Linux?
          Let's assume the kiosk distro has hotplugging enabled. Flash drive mounts, But the files.... Are not executable! So, the hostile doesn't have the opportunity to change permissions much less execute something on a flash drive.

          OSX?
          Flashdrive mounts. Hmmm can't install anything without su/sudo.

          Windows?
          Hmm... Sure, there is an enourmously complicated policy system. But none of which sets noexec on everything on a flash drive... http://support.microsoft.com/default.aspx?scid=kb; en-us;555324&sd=rss&spid=3198 [microsoft.com] And then there's the very permeable "user mode" security that isn't what it claims to be.
          • Re: (Score:2, Interesting)

            by FoamingToad ( 904595 )
            At my previous job at a telco, we'd just upgraded from NT4 to XP.

            Now please note that (1) this is anecdotal, (2) I wasn't affected by this user profile myself so had very little time to experiment and (3) I changed jobs shortly afterwards.

            But for the generic helpdesk accounts, the IT guys had seriously done their homework. A user had no access to the file system at all. You couldn't get to it via browser, and the start menu contained only the basic applications (notably, terminal emulators connected to Uni
      • by eh2o ( 471262 )
        Any machine can be a vector -- whatever form, intentional or otherwise -- a dumb virus, a buggy app, a faulty NIC, or a clever hacker with a USB drive. Nobody in their right mind expects a computer with MSIE running in kiosk mode to be tamper proof. Sure, the kiosk could have been more secure, but even so that is only the first line of defense. The real problem was the connection from the kiosk straight into the corporate intranet, which is an absurd transgression to even the most basic security policy -
        • by SuperQ ( 431 ) *
          Yep, I discovered a retail sporting goods chain had some kiosks made of thin client termains (wyse winterms) that used a custom striped-down browser using the embedded IE rendering engine. It was very well locked down to prevent you from leaving the store's internal website. All it took was one URL I found after about 10min of digging through various pages that was a link to an outside site (I think it was the vendor that built the web server for the kiosk system) to find a URL that would let me save a fi
    • Re: (Score:2, Interesting)

      as some one who worked there. they are retailers , they always cut corners. they have a small staff of it guys to overlook so many stores and it bit them in the ass.
      • And, in particular, TJX is a DISCOUNT retailer. They cut corners everywhere - and obviously IT planning and support and infrastructure etc. is looked upon as unnecessary overhead.

        Surprised? No. It was something that was inevitable - just waiting to happen.
    • I think you mean "D'OH!!"
    • by Anonymous Coward
      I've applied for job in retail once before. I went to a store and they had placed the units near a corner next to the bathroom. Their view was obscurred by a rack of greeting cards. Even though they had the application blocking access to the desktop; I could have easily rebooted the machine by either pressing reset.

      After that I could have worked quickly to either access the BIOS and slip in a password wiping utility disk and create an account for myself. I guess after that; installing third party apps to es
    • Who's next? (Score:1, Interesting)

      by Anonymous Coward
      Ten to one [slashdot.org], we hear next week that some large repository of Student papers is vulnerable too.
  • the blame game!
  • by jeebee ( 229681 ) on Thursday August 16, 2007 @05:43PM (#20255189)
    The same kiosks that print out gift registries can be turned into kiosks that print out credit cards to pay for the purchase!
  • I'm rapidly strengthening my belief that this will not be the only company (large or small) to go through this - that many, many other companies are probably having the same done to them *right now* and don't even know it!

    This is a really crappy situation; it shouldn't have happened and frankly the entry points described here are a result of negligence plain and simple! But its hard; its hard to manage a large organisation and to enforce correct and watertight procedures; security is a hard concept, one o
    • by swright ( 202401 )
      hmm.

      </doom_and_gloom>

      The point at the end of the article cannot be overstated; noone can steal from you what you do not have. In desktop terms; don't be afraid of the Delete button!
    • by Locutus ( 9039 ) on Thursday August 16, 2007 @05:58PM (#20255291)
      but businesses are not even trying. American Express was/is running Microsoft Internet Explorer on their customer service reps desktops AND they have internet access. With all the holes found every day in this combination, these customer service reps use the same browser to access AMEX customer databases.

      I don't know if you remember but a few years ago, there was a massive security hole in MS IE and Microsoft didn't/couldn't fix it for about 6 months. The Dept of Homeland Security even put out a recommendation to not use MS Internet Explorer because of this unpatched flaw. AMEX did nothing about it and continued as normal.

      Move about a year later and all of a sudden, CNN is on the air with no computer systems and spend the hours on the air discussing how their Windows computers are rebooting on their own. City governments across the country have the same problem and so does AMEX. The cause, a Windows spyware kit, having been installed on all these computers and many more, was crashing on some subset of the computers it was installed on and causing those to reboot. The spyware was already on a bunch of computers and only because there was a flaw which caused it to crash SOME of the computers, was it found out about.

      There is no security in corporate America or the various governments. Sure, there are some areas where smart people are doing what's right but it looks like 90% of the rest are feak'n MCSE's with one finger up their ass and the other on the mouse. click, click, click.

      These businesses should be made to pay $10,000 every time they lose customer data and for every customer. That doesn't even begin to pay for the hardships of dealing with identity theft, not even close but it would add up to millions quickly and it just might make them think about who's running the company IT department and what they are running.

      LoB
      • When I was there a few months ago, AMEX was still running IE6 as their browser of choice. There was a separate program that hooked up to the databases, though.
    • This was carelessness and cutting corners. Nothing else.

      Security costs manpower. Security is not a tool that you buy and install with the default features set. Security is not something you set in stone today until the end of times. But that's something you can hardly explain to a manager. Because he doesn't see the immediate benefit of security. In fact, if the security is really good and no breaches are allowed ever, he might never see the benefit because, well, nothing happens.

      You only get to see that yo
    • by PPH ( 736903 )

      I'm rapidly strengthening my belief that this will not be the only company (large or small) to go through this - that many, many other companies are probably having the same done to them *right now* and don't even know it!

      Or know it but can't say anything about it.

      First, there's your department within the company. Who wants to be the first person to step up and report to the BOD that 'we' have screwed up and possibly cost the company millions? Next, once corporate knows it, they are not highly motivated to

    • by bhmit1 ( 2270 )

      I'm rapidly strengthening my belief that this will not be the only company

      I'm pretty sure you're right. It's a high value target to hit and a hard target to secure. First, you have stores that move things around frequently, tempting them to go wireless (ala Best Buy's fiasco). Next, you have a low margin highly competitive business where cutting cost on employees, hardware, security, etc, (especially in the stores where each dollar spent is multiplied by thousands) is good for business. Then you have

  • by Schraegstrichpunkt ( 931443 ) on Thursday August 16, 2007 @05:53PM (#20255259) Homepage

    However, Visa indicated in February, through a number of documents sent to financial institutions that issue cards and manage Visa transactions, that TJX was storing card number, expiration date, and card verification value codes, all of which are prohibited by PCI. As for its efforts at encryption, "We believe the intruder had access to the decryption algorithm for the encryption software we utilize," TJX said in its annual report.

    I love it how people talk about how they're using "encryption" when possessing the algorithm is enough to break it.

    Idiots.

    • Well , knowing the encryption algo. makes it easier to guess passwords. These guys were an overworked understaffed operation. And in retail this is normal and an on going issue.

      The truth is there is no real way to solve these issues. They need a igger staff and good IT workers are very hard to come by when you value only the resume and not the persons abilities. This should make every retailer reconsider thier staff. This should also make every company reconsider what they think of IT workers.

      We for to long
      • the joys of not working for a "value added" dept.

        eventually, as consumers become more savvy (remember for the non-techie folks how NEW all of this is) you'll see people begin to gravitate toward companies that sell the idea that they are a "Secure" place to do business.

        this started happening a few years ago on the web... soon it will be occuring in the brick and mortar stores. until then, it's the wild west.

        and...
        JOB APPLICATION KIOSKS connected to the network? WHY? i have had this conversation with vari
      • Re: (Score:3, Informative)

        by flosofl ( 626809 )

        Well , knowing the encryption algo. makes it easier to guess passwords.

        Not at all. One of the key features of cryptographic algorithms is that knowing what algorithm is being used has absolutely no impact on the strength. Unless it's one of those snake oil "proprietary" crypts, which is a horse of an entirely different color. However, I can't think of any enterprise class crypto systems that use closed algorithms. Most use AES, Blowfish for block cipher, RSA and ElGamal for async and signing (maybe DSA f

        • by fishbowl ( 7759 )
          "Not at all. One of the key features of cryptographic algorithms is that knowing what algorithm is being used has absolutely no impact on the strength."

          A layer of obscurity makes a secure cipher no less secure.
          • by flosofl ( 626809 )
            That's not what I was saying. I was responding to the OP's point that knowing what algorithm is being used can help you "guess" the password/passphrase (I'm thinking he meant key). It doesn't, and trying to attack an alogorithm like AES or Blowfish is almost always a complete waste of resources and time.
            • by cduffy ( 652 )
              The OP is right, if the key is nonrandom. If the key is a hash of a password or passphrase and you know the algorithm in use, one can then attempt a dictionary attack.

              Stupid way to implement anything that's supposed to be secure (and you're right that there are better attack vectors), but that's not to say it isn't sometimes done that way.
      • by plover ( 150551 ) *

        Well , knowing the encryption algo. makes it easier to guess passwords.

        Kerckhoff's Principle states that a crypto system should be secure even if the attacker knows the algorithm. The strength of the algorithm rests solely on the secrecy of the key.

        If they even used encryption (which is still a question) they probably used a home-grown solution with no cryptographic review of the algorithms, the process, or of simpler things such as key management. Perhaps they baked a symmetric key in their source

        • Don't blame the industries solely. There have been repeated attempts to organize robust encryption in network protocols, for use in data storage, and for various basic computer operations. On the corporate side, it tends to run headlong into the US encryption export regulations, which deal with encryption technologies as materials of war and keep us all safe by trying to make sure we don't provide any to anyone else unless they promise, honest and for real, that they are allowed to have it.

          If you've never d
          • by plover ( 150551 ) *
            EAR / ITAR and government monitoring discussions are completely irrelevant. The industries have both the cryptographic know-how as well as full access to the technology. Plus, the industry has no particular concern that the government not be able to monitor or decrypt the communications. They'd be fine with a key escrow based solution. Trust me: the U.S. government isn't keeping Visa from having access to RSA or AES.

            The problem is strictly one of Visa's origin. 9 years ago Mastercard created the Secu

    • Hey, the manager couldn't read it anymore, so it was encrypted. I once got by with ROT13'ing because I couldn't finish the project.

      But that's ok. This report will only be read by people who don't have a clue about encryption, so they will read "encryption was broken" and be satisfied with it. Yes, anyone with at least half a clue in encryption technology would immediately call it bullshit. But nobody who can see the difference between a geek code and a PGP encrypted message will ever get to question this re
    • I love it how people talk about how they're using "encryption" when possessing the algorithm is enough to break it.

      They can if it's ROT13.

      Seriously, though, I'd expect that kind of comment from a mainstream news story or a press release, but the quote is attributed to the company's annual report -- not somewhere where you get to fudge without consequences.
    • by mybecq ( 131456 )

      However, Visa indicated in February, through a number of documents sent to financial institutions that issue cards and manage Visa transactions, that TJX was storing card number, expiration date, and card verification value codes, all of which are prohibited by PCI.

      Wrong [pcisecuritystandards.org] (see Preface summary table). Only CCV2, PIN and the full magnetic stripe are prohibited. Account number, expiration date and name are permitted, although must be protected.

    • Bu lrnu? Vs lbh'er fb fzneg, gel gb penpx zl 1337 plcure!
    • The PCI guidelines forbid merchants from storing personal information with credit card numbers and the CVV2 (three digit number printed on the back of the card) at all. Encryption isn't supposed to be allowed at all, but hashing is.

      I can't go into too much detail, but there are reasons a merchant would have to retain all of this information. The most significant one is fraud. Not only do you have to detect fraud, but you also have to be able to present evidence when you prosecute the criminals.
  • by billdar ( 595311 ) * <yap> on Thursday August 16, 2007 @06:05PM (#20255323) Homepage

    "In May, The Wall Street Journal cited a separate entry point, reporting that data thieves had accessed an improperly secured Wi-Fi network from the parking lot of a Marshall's store in St. Paul, Minn. The thieves reportedly used a wireless data poaching tactic called "wardriving" and exploited the deficiencies of the aging Wired Equivalent Privacy wireless security protocol."(Emphasis mine)

    Was shaping up to be a decent tech article until this. I don't know what irks me more about this quote:

    - Needing to define an old-ass term like wardriving
    - defining it as poaching
    - "putting" the "word" in "quotes" (I can just see the author's fingers in the air)

    Firewalls, disabling usb, corporate LAN, etc are tossed around freely... why jack with wardrivers?

    • by Radon360 ( 951529 ) on Thursday August 16, 2007 @06:25PM (#20255479)

      Because proper tech journalism is about using buzzwords to sound techy!



      If you're an incompetent, technologically ignorant journalist, then you go out and look for some terms that sound appropriate and cool, then include them in your story. Heck, as a journalist, your job is to describe and explain something to the uninformed. Since the uninformed are largely a technologically challenged audience,they'll accept your cool usage of terms, usually considered passé by the real tech crowd, as an insightful look into the sophisticated technical world.



      So, if you want to be a cool tech writer, just liberally toss in a couple terms like, nano, blog, cyber, online, real-time, data mining, and Google (the last one especially used as a verb).

  • by Opportunist ( 166417 ) on Thursday August 16, 2007 @06:12PM (#20255365)
    It's only a matter of time. The problem described is not isolated, it's symptomatic for a very large amount of companies.

    What do we have:

    1. A company with many kiosks/outlets/POS
    2. A company network with the doctrine that everything "outside" needs to be kept out, while the "inside" has far too high privileges.
    3. Untrained, unskilled and "do we need to pay minimum wage?" staff at the POS.

    It is fairly easy to get a job at one of those POS. Hire and fire. You want it, you have it. No background check, no security check. You're simply assumed to be a vegetable because, well, if you had some kinda skill, you wouldn't work for 5 bucks an hour. You'd be a consultant for 50 an hour.

    It's usually trivial to circumvent the security between the company's computer network and the POS, if there is one at all. Let me ramble about an audit for a moment.

    We did an audit for some company. All went fairly well, an "outsider" would've had a very hard time getting past the walls and checks. All POS were VPN connected to the main network, secured again with various (IMO superfluous) encryption, so a mitm attack would've been fruitless either. Good security, overall.

    Until we checked the POS computers and found pretty much everything you needed to get access to the servers in the main office. You had the complete set of private keys (yes, all, including accounting, administration and the CEOs), the admin passwords were the same in every POS and inside the main network. You hack a POS, you hack the company.

    Facing this, the response was akin to "What do you want? The people in our POS' can barely turn the computer on, that's no threat."

    Maybe not. But if I wanted to hack that company (or any company), I'd first of all try to get a vegetable job at a POS. It's usually a quite good way to gain access to more than you could ask for.
    • by Opportunist ( 166417 ) on Thursday August 16, 2007 @06:23PM (#20255453)
      Another company I worked for. It uses a VB based tool to update the jobs of its traveling salesmen and repair staff. Said tool uses DCOM (don't ask...) to connect to its server, which runs an SQL database. The user used to make those connections has top privileges, including altering the database and any (not just the specific user's) data. Mostly because all the users use the same username/password combination, which is of course stored within the binary used to make the transfer.

      It's trivial to dig that user/pass combination out of the code. It's also trivial to get access to the code, all you have to do is to steal one of the notebooks. Or, to make it simple, just download it from the internal homepage (so everyone working in this company at the very least has access to the tool and thus to the user/pass combination). With it, you have all the necessary information to feed the database incorrect data, change prices, change orders and repair jobs, change car and tool assignments and of course, if you're so inclined, simply corrupt the database or drop it altogether.

      This is an international company, the stock of which is traded at the NY stock exchange. Thus, it complies (with this security hole large enough to shove planets through) with the requirements of the Sarbanes-Oxley Act.
      • by swb ( 14022 )
        It sounds serious, but I guess I have to ask if its being widely exploited and who has significant motivation to exploit and to what gain?

        I'm just thinking that there's so *many* exploits out there, that simply being exploitable isn't enough, it has to actually be exploited regularly and/or significantly enough to matter.
        • Erh... hello? SOX compliancy? The very act that's bugging developers and giving admins a nightmare, which we grin and bear with because it should actually make companies more "transparent", but in their financial behaviour, not their data!

          This hole allows an outsider to manipulate the financial situation of a company, not just a manager. We're not talking about some garage company with an annual business volume of a few 100k, this is an international company where the average business case runs that amount.
  • 'The people who started the breach opened up the back of those terminals and used USB drives to load software onto those terminals'

    No one noticed the guys opening the backs of these terminals in the middle of the store? Sounds like there store security is worse than the network security. I would hate to see how much they write off each year to theft.

    • You'd be surprised what people let you have access to if you're wearing some shirt that looks official (like TJMaxx or Verizon)..oh we're just upgrading the Kiosks.
      • A set of coveralls and a nametag that says "Bob" will get you access that a suit and tie never would.
      • ... if you're wearing some shirt that looks official (like TJMaxx or Verizon)...


        ... both of which can be found very easily at your neighborhood Goodwill or Salvation Army, because when the techs get fired (former Circuit City tech here), what are they gonna do with the shirts besides give them away?
  • by IronChef ( 164482 ) on Thursday August 16, 2007 @06:45PM (#20255621)
    Who here has gotten a free year with a credit watchdog service due to your information having been leaked by some company you dealt with? (The letter I got actually said that my information was put at risk due to some kind of sloppy law enforcement access. WTF?)

    I normally hate calling for more laws but there should be more severe penalties for this kind of error. Otherwise... it will keep happening.
    • I normally hate calling for more laws but there should be more severe penalties for this kind of error. Otherwise... it will keep happening.

      Glen: Outsiders have kidnapped some of our property. We must respond with our deadliest weapon.
      Jane: [Sinister] The lawyers.

      You won't have to worry about that. Banks are suing [informationweek.com] TJ Haxx to collect on their out of pocket costs in replacing all those cards. Laws would simply result in fines paid to the FTC. Lawsuits will hit the bottom line. Lawsuits = fear, and fear = act

  • So let me get this straight, the data thieves had physical access to a computer on the stores network. Sounds like a physical security issue that a security guard should have noticed. Not all computer and network security is electronics and software. Sometimes you gotta watch who you let in the store and watch what they are doing once inside.
  • by rbrome ( 175029 )
    What the heck is TJX? I've never heard of it.

    (checks article)

    Oh... the none-name corporate parent of TJ Maxx and Marshalls... why the heck didn't the author just say so? I mean seriously... how many people have ever heard of that company name? It's hardly a tech company, either, so it's not like Slashdot is some unusual audience where TJX is a company on the tip of everyone's tongue.
    • by bhmit1 ( 2270 )
      1. What's so bad about RTFA?

      2. If you were paying attention, every article for the past 6 months has been referring to it as TJX (it is the corporate name after all). The first articles about it included something about it being TJ Maxx/Marshalls/etc.
    • Oh, everyone knows what tjx is these days. The biggest credit card theft ever. Its like not knowing who sco is a couple months after the law suite started. Well, maybe not but this is going down as the biggest security screw up ever. Thats big.
    • Or TK Maxx as they're known in Europe.
      • by Fred_A ( 10934 )
        Maybe your part of Europe but on the continent I've never seen that name anywhere. Nor have I ever heard of J Maxx and Marshalls or of TJX for which I have always substituted "large retail company" when reading those stories. Not that any of this matters much though...
  • Comment removed based on user account deletion
  • We gave up our financial security for convienence.

    Instant credit at stores, Drive the car off the lot today, get a cell phone in 10 minutes...

    Maybe, instead of the consumers credit rating being damaged when a business gives credit without solid proof of indentity, the company needs to eat the loss.

    I wonder if anyones tried sueing a company for Slander/Libel over a false credit report entry...
    • I'm going to take a pretty educated guess (since I don't feel like looking up the US Code). Since the credit reporting system is regulated at the federal level, me thinks that Congress shut that door long ago.
    • Re: (Score:3, Informative)

      by Alioth ( 221270 )
      Actually, the merchant usually DOES take the loss (although it's seldom the merchant who leaks the information who gets it in the shorts).

      Basically, if you manage to fraudulently obtain a credit card, run up a huge bill, well - the person whose credit card you stole tends to get their money back. The credit card company also gets its money back, because it simply passes the chargeback to the merchant where the stolen credit card was used.

      So there is little incentive for credit card companies to do anything
  • I called this the "TJ Maxx Effect". Yes, I shop there; it's near my house and I can usually do better on housewares and necessary items than I could do even in thrift stores.

    So anyway, the "Effect" is this: If you are shopping, and you take an interest in some category of items, say, curtain rods, and another shopper sees you checking out curtain rods, all of a sudden *they* are interested in curtain rods. Same thing happens if you look in the towel aisle. Someone who wasn't looking at towels suddenly n
    • Watching those kiosks like hawks? I don't know how busy your store is, but the stores I see (not exclusive to TJMax) have those kiosks near their customer service desks. They might be able to watch them during their slow periods, if they thought it was important enough, but go in when that service desk is busy and it is unlikely that the employees even care what is going on there since they are dealing with Mr. or Ms. "I-got-this-and-it-works-fine-but-its-broke-and-I - don't-need-it-because-my-uncle's-frien

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