CVS Health Corp and Wal-Mart Canada Corp on Friday said that a data breach at a Canadian information technology vendor might have leaked credit card information from their online photo-processing Web sites, possibly compromising data of millions of users.
The two retailers have temporarily shut down their online photo-processing services and related mobile services, and are investigating the scope of the possible breach, the companies said in separate statements. Both retailers urged customers to check their credit card records for any suspicious activity.
CVS and Wal-Mart Canada said that a vendor based in Vancouver, British Columbia, called PNI Digital Media Inc hosts the sites and collects customers’ payment information. The vendor is owned by Staples Inc, which experienced an online attack of its own last year.
Neither retailer disclosed how many users might have been affected by the possible breach, which was first reported by Krebs on Security, a news site that focuses on online crime and other Internet security topics.
According to PNI’s investor relations page, the vendor also provides software to the online photo-processing services of a third retailer, Costco Wholesale Co.
Adam Levin, founder of the security firm IDT911, said the breaches highlighted the importance of more rigorously vetting information technology vendors at a time when companies outsource more and more of their operations. Vendors have often proved to be the weakest link, he said.
“Breaches have become a certainty in life, and everybody has got to step up their game,” he said. “Even if the problem stems from a vendor, the retailer’s reputation is harmed, and it ends up in the middle of lawsuits.”
Staples spokesman Kirk Saville said PNI was investigating a potential credit card data security issue.
CVS spokeswoman Erin Pensa said the retailer is working with PNI and credit card companies to investigate a possible breach.
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